Silicon Valley Bank Financial in Talks To Sell Itself After Attempts To Raise Capital Failed

SVB Financial, parent of Silicon Valley Bank, is in talks to sell itself, sources told CNBC's David Faber. From the report: Attempts by the bank to raise capital have failed, the sources said, and the bank has hired advisors to explore a potential sale. Large financial institutions are looking at a potential purchase of SVB. Shares of the bank fell 60% on Thursday after SVB announced a plan Wednesday evening to raise more than $2 billion in capital. The stock fell another 60% in premarket trading Friday before being halted for pending news. Under the terms of a plan released Wednesday, SVB was looking to sell $1.25 billion in common stock and another $500 million of convertible preferred shares. SVB also announced a deal with investment firm General Atlantic to sell $500 million of common stock, though that agreement was contingent on the closing of the other common stock offering, according to a securities filing. SVB is a major bank for venture-back companies, and cited cash burn from clients as one reason it was looking to raise additional capital.

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