Midwest Banc shares rebound
Midwest Banc Holdings Inc., the Illinois banking company, rose the most in 10 years in U.S. trading as Chief Executive Officer James Giancola began meeting investors to discuss a plan to raise capital.
"We are a bit ahead of the curve, as we are out seeking new capital to bolster our already well-capitalized status," Giancola said in an e-mail today. "Our market is experiencing tremendous dislocation and we want to be in position to take advantage of growth opportunities as they present themselves."
Shares of the Melrose Park-based bank climbed $2.16, or 74 percent, to $5.06 at 4 p.m. in Nasdaq Stock Market trading, the biggest jump since its initial public offering in February of 1998. The shares have fallen 59 percent this year.
Midwest Banc plummeted 34 percent yesterday after the company announced suspension of its dividend and said it will issue more shares to raise capital. "The market overreacted and people are realizing that today," Midwest Banc spokesman John B. Pelling III said in an interview.