Capitol Bancorp Ltd., which has headquarters in Lansing, Mich., and Phoenix, has commenced an exchange offer to holders of its trust-preferred securities.

The $4.2 billion-asset company is offering holders of its $170.8 million in trust-preferred securities one share of common stock for every dollar of the liquidation amount. For instance, holders of Capitol's first and 12th issuances of trust-preferreds, valued at $10 per unit, are being offered 10 shares. The offer was announced Tuesday.

Capitol has asked shareholders to authorize increasing its common stock to 1.5 billion shares from 50 million. Analysts said the deal could give trust-preferred holders more than 90% ownership in Capitol.

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