PacWest to Buy CapitalSource for $2.3 Billion in Cash, Stock

Lock
This article is for subscribers only.

PacWest Bancorp agreed to purchase CapitalSource Inc. in a deal valued at about $2.3 billion to create the eighth-largest commercial bank based in California. Shares of both companies surged.

CapitalSource investors will get about $11.64 in PacWest stock and cash, 18 percent more than yesterday’s closing price, the Los Angeles-based companies said in a statement. Each CapitalSource share will be exchanged for 0.2837 PacWest share and $2.47 in cash, according to the statement.