Umpqua Holdings Corp (UMPQ.O) is in advanced talks to buy private equity-backed Sterling Financial Corp STSA.O in a deal that may be valued at about $1.8 billion, Bloomberg reported on Monday, citing people with knowledge of the discussions.
The talks may still collapse and there's no guarantee a transaction will occur, the report said. (r.reuters.com/vab92v)
Spokane-based Sterling Financial is backed by Warburg Pincus LLC and Thomas H Lee Partners LP, which each own about 21 percent of the lender, according to Thomson Reuters data.
Umpqua Holdings shares rose 7 percent to $17.36, while Sterling Financial shares were up 4 percent at $27.90 in afternoon trading on the Nasdaq on Monday.
(Reporting by Aman Shah in Bangalore)