The Wall Street Journal reported that commercial lender CapitalSource has put itself up for sale. There’s been no comment from the company, but the WSJ report was quickly matched by the New York Times, Bloomberg, Reuters and American Banker, all citing knowledgeable sources.
CapitalSource is a commercial lender to small and midsize businesses, with radio and TV station loans included in its media lending unit.
Created in 2001, CapitalSource trades on the NYSE as “CSE.” The stock hit a 52-week high of $7.83 on Thursday morning. It had closed at $7.33 on Wednesday, surging in the final hour of trading as rumors of the potential sale began circulating. The Tuesday close had been $7.03 and the stock had traded as low as $3.87 in the past year.
According to the WSJ report JPMorgan Chase is soliciting potential bidders for CapitalSource. The unidentified sources cited by the WSJ also cautioned that there might be no sale if there is not enough interest.
RBR-TVBR observation: Our main hope is that if some other financial institution does acquire CapitalSource it at least retains the media portfolio – and hopefully expands it.