Stocks for the Doral Financial Corp. (NYSE: DRL) skyrocketed over 40 percent today after the company received a proposal from the FBOP Corporation to purchase $610 million of Doral’s stock at approximately $1.41 a share, for an 80 percent ownership interest in the company.According to the company’s latest press release, this isn’t the first proposal the company has received this month. On May 16, 2007, Doral entered into a Stock Purchase Agreement with Doral Holdings Delaware LLC, a newly formed entity in which Bear Stearns Merchant Banks will invest, along with other investors. In the press release, Doral stated that it “continues to be bound by the terms of the stock purchase agreement” and filed a preliminary proxy statement with the SEC “in respect of the transaction contemplated by the agreement.”
Doral’s board of directors will promptly review the terms of the proposal submitted by FBOP in a manner consistent with its obligations under the May 16, 2007, stock purchase agreement and the directors’ fiduciary duties.
Separately, Doral has received confirmation from Doral Holdings that it has obtained sufficient additional equity commitments from investors to fund the proposed investment in Doral and that the condition to closing relating to obtaining additional commitments has been satisfied.
The Company further announced that it has set June 11, 2007, as the record date for the Annual Meeting of Stockholders.
In response, stock rose from an opening price of $1.50 per share to a mid-afternoon price of $1.88 per share.
Spokespersons for Doral declined to comment.