CORRECT:US Treasury Expected To Earn $181 Million From Comerica Warrants Sale

Date : 05/07/2010 @ 10:44AM
Source : Dow Jones News
Stock : First Financial Bancorp. (FFBC)
Quote : 29.1  -0.1 (-0.34%) @ 4:30PM

CORRECT:US Treasury Expected To Earn $181 Million From Comerica Warrants Sale

Comerica (NYSE:CMA)
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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;


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