Southeast Drops On Possibility Of Assisted Deal
Shares of Miami-based Southeast Banking Corp. tied their record low Friday on word that the ailing banking company is considering the possibility of a federally assisted takeover.
Southeast shares dropped 25 cents, to $1.75.
The troubled company, which has been seeking a buyer, had previously ruled out a deal involving an infusion from the Federal Deposit Insurance Corp.
But in a press release issued after the stock market closed Wednesday, the company said it was holding discussions with potential acquirers that might require federal aid. In such a deal, current shareholders would be severely diluted or wiped out.
Agreement with Atlanta Fed
Southeast also announced Wednesday that it had entered into a written agreement with the Federal Reserve Bank of Atlanta, a step representing increased regulatory supervision of the bank's activities.
Other bank stocks were mixed Friday in light post-holiday trading. California banks wre the strongest performers, rebounding from fears last week about deepening economic problems in the state.
Other Bank Stocks
BankAmerica Corp. was up $1, to $34.5. It reported late Wednesday afternoon that its earnings for the second quarter would be flat.
Wells Fargo & Co. was up $1.125, to $66.5. Wells' shares have fallen from around $92 a share in the past two weeks after the bank reported a sharply higher provision for loan losses.
Security Pacific Corp., which reported Wednesday that its profits for the second quarter would be sharply lower, was down 12.5 cents, to $21.125.
U.S. Bancorp, which reported last week it was doubling its loan-loss provision in the second quarter, was up 50 cents, to $26.625. First Interstate, which earlier last week said it would report a loss for the second quarter and cut its dividend, was up 12.5 cents, to $26.75.