CORRECT:US Treasury Expected To Earn $181 Million From Comerica Warrants Sale
May 07 2010 - 10:44AM
Dow Jones News
The U.S. Treasury Department announced Friday it stands to earn
about $181.10 million from its sale of warrants to purchase common
stock of Comerica Inc. (CMA).
Treasury sold roughly 11.5 million warrants at $16 each. The
closing is expected to occur on or about May 12.
The department announced plans Tuesday to sell the warrants to
purchase common stock of the Dallas bank for a minimum bid price of
$15 each.
"This offering represents Treasury's sale of its remaining
investment in the company," the department said in a statement.
The warrant auction is part of a U.S. effort to minimize losses
on a controversial $700 billion financial-sector bailout that
started in 2008. The Treasury announced plans last month to sell
warrants in six banks, including Comerica. The federal government
received the warrants in 2008 when it provided support to about 270
banks through Treasury's Troubled Asset Relief Program.
The other five banks are Wells Fargo & Co. (WFC), PNC
Financial Services Group Inc. (PNC), Valley National Bancorp (VLY),
Sterling Bancshares Inc. (SBIB) and First Financial Bancorp
(FFBC).
The Treasury previously said it would collect $320 million from
its auction of warrants to buy shares in PNC. Treasury has netted
about $3 billion from auctions so far and has deals in the pipeline
that could earn an additional $1.3 billion by the end of May.
-By Darrell A. Hughes, Dow Jones Newswires; 202-862-9255;
darrell.hughes@dowjones.com
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