April 5 Shares of Anchor BanCorp Wisconsin Inc
ABCW.O sank as much as 33 percent Monday after the
capital-starved lender said on Friday it was exploring
strategic alternatives, including a potential sale, and ended a
deal with Badger Holdings for a prospective investment.
The loss-making lender also said it engaged SandlerO'Neill
Partners LP as financial advisor to assist the company in
evaluating strategic alternative.
The Madison, Wisconsin-based company said it and Badger
Anchor Holdings LLC agreed to terminate their agreement which
had granted the investor exclusivity through March 31 with
respect to negotiating an investment in Anchor.
"The complexity of the transaction led to challenges in
completing the agreement prior to the March 31, 2010 date,"
Anchor Chief Executive Chris Bauer said in a statement.
The company said strategic alternatives include
recapitalization, merger of the company, sale of additional
branches and other capital-raising alternatives.
In December, Anchor said Badger Holdings, led by investment
banker Steven Hovde, would infuse $400 million into the
company, on condition that the U.S. Treasury converts the
preferred stock and warrants into common shares. Shares of the
company were down 28 percent at $0.83 in morning on Nasdaq.
They touched a low of $0.76 earlier in the session.
(Reporting by Abhinav Sharma in Bangalore; Editing by