Banking: Western Alliance rises off lows for the day as bank denies it is pondering a sale

by | May 4, 2023 | Stock Market

Western Alliance Bancorp.’s stock ended above its lows for the session on Thursday after a volatile day of trading, as the company issued a strong denial of a press report that it had hired an adviser to weigh the potential sale of all or part of the company. Typically such a speculative report would spark a rise in a share price of a company, but in the case of Western Alliance
it initially caused the stock to fall even more sharply amid jitters about the health of regional banks.

In a choppy session with several trading pauses for volatility, Western Alliance’s stock fell 38.5% to close at $18.29. That was still well above a low of $7.46 a share earlier in the day. Even with the recovery, the stock fell to below its 2005 initial public offering price of $22 a share. Read more: ‘We are running out of time to fix this problem’ — Bill Ackman’s latest warning on regional banks Western Alliance said the report by the Financial Times that the bank was considering strategic alternatives for its business was totally false. “There is not a single element of the article that is true,” Western Alliance said. “Western Alliance is not exploring a sale nor hasn’t hired an advisor to explore strategic options. It is shameful and irresponsible that the Financial Times has allowed itself to be used as an …

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