Shares of Life Financial Corp. plunged about 25% Wednesday, amid market rumors that the company's proposed sale to First Plus Financial Group was being quashed by regulators.

The company's shares traded as low as $12.75 on Wednesday, down $5.375 from Tuesday's close of $18.125, and closed at $15.375.

First Plus Financial Group, Dallas, said it would buy Life Financial in March, for $20 a share, as long as First Plus traded between $40 and $50 a share.

Analysts said that First Plus may announce that the deal is off today, when it releases second-quarter earnings.

Life Financial, based in Riverside, Calif., makes home equity and subprime mortgage loans through 15 locations in California, Colorado, and Florida.

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