Pacific Bank's stock soared 40% after it signed a letter of intent to be bought by a suitor from the north for at least $20 a share.

The San Francisco bank's cash deal with Western Bank, Coos Bay, Ore., will be worth at least $55 million, or six times the bank's market value when it hit bottom in 1992. The purchase price will be based on a multiple of the bank's $16.36 book value. At the minimum $20 price, it would be 1.2 times book.

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