Silicon Valley Bank Financial in talks to sell itself, report says

Silicon Valley Bank Financial, the holding firm of Silicon Valley Bank, is in talks to sell itself, according to CNBC, the latest turn for the technology-focused lender as it grapples with rising interest rates and many of its customers scramble to get their money out. Shares of Silicon Valley Bank Financial fell 60% Thursday, causing panic among many of its customers — and industry at large.

CNBC did not identify the buyer, but reported that Silicon Valley Bank unsuccessfully attempted to raise money from investors before exploring the sale. No official word from the company, either. The firm halted trading Friday pending incoming news.

California-based lender spooked many of its customers on Wednesday after it announced its plans to offer $1.25 billion of its common stock to investors and a further $500 million of mandatory convertible preferred shares. General Atlantic said it had agreed to buy $500 million of the bank’s common stock in a separate private transaction, though that was contingent on the closing of the common stock offering, per its SEC filing. We have reached out to General Atlantic to ask for the latest status on the $500 million commitment.

More to come, refresh to update.

Silicon Valley Bank Financial in talks to sell itself, report says by Manish Singh originally published on TechCrunch