Deals
SVB’s Failed Stock Offering Shows Banks the Value of Secrecy
- Dealmakers see lenders securing funding before announcements
- SVB’s public share sale put a spotlight on financial weakness
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Silicon Valley Bank’s collapse and the ensuing market chaos could have been mitigated if its last-gasp $1.3 billion stock offering had been more fully negotiated in secret, dealmakers say.
In fact, to Steve Maletzky, head of equity capital markets at William Blair & Co., the deal failed because SVB publicly introduced risk to depositors and investors by announcing a need for capital.