Reuters: Deals: Mitsubishi UFJ unit to buy Pacific Capital for $1.5 billion

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Mitsubishi UFJ unit to buy Pacific Capital for $1.5 billion Mar 12th 2012, 14:00 Mon Mar 12, 2012 10:00am EDT (Reuters) - UnionBanCal Corp, a unit of Mitsubishi UFJ Financial Group (8306.T), said it will buy Pacific Capital Bancorp (PCBC.O) for $46 per share in cash to expand its geographical footprint. The deal, valued at about $1.5 billion, is at a 60 percent premium to Pacific's Friday closing price. SB Acquisition, Pacific's largest shareholder with about 75 percent of its shares, has approved the deal, Pacific said in a statement. Pacific, which has about $5.9 billion in assets, was recapitalized in August 2010. The company said the deal will reduce its costs by about 40 percent. The transaction is expected to be completed in the fourth quarter of 2012. "This allows us to extend our community-focused banking services to customers in the vitally important Santa Barbara and Central Coast regions," Masashi Oka, chief executive of Union Bank, said in a statement. Shares of Pacific Capital were trading up 57 percent at $45.10 on Monday morning on the Nasdaq.

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