* Options include sale of co; met with potential suitors
* Hires Citigroup Global Markets as financial advisor
* Terminates stock purchase agreement with TBW
* Q2 loss widens
* Shares down 10 percent
July 31 (Reuters) - Colonial BancGroup Inc said Friday it is exploring options including a sale or merger and raised doubts on its ability to continue as a going concern, sending its shares down 10 percent.
The company also terminated a $300 million stock purchase agreement with Taylor, Bean & Whitaker Mortgage Corp as the parties failed to get necessary regulatory approvals by the July 31 deadline.
The financial services company, which posted its fifth straight quarterly loss, also said it was uncertain it would be able to maintain capital levels for its subsidiary Colonial Bank, as ordered by the Federal Reserve, Federal Insurance Deposit Corp (FDIC) and the state of Alabama.
Last month, Colonial's banking unit agreed to a cease-and-desist order with regulators, requiring the bank to increase capital levels and reduce problem assets, among other things.
The company said it was looking at options including a possible sale or merger of the company, selling its Nevada branches, sale of problem assets, reducing expenses, along with other alternatives.
The company said it engaged Citigroup Global Markets Inc as its financial advisor, and that it has held private management meetings with potential strategic acquisition candidates and private equity investment firms.
The company posted a second quarter net loss of $606 million, or $3.02 a share.
Shares of the Montgomery, Alabama-based company were down 10 percent at $0.55 in after market trading on the New York Stock Exchange.
(Reporting by Brenton Cordeiro in Bangalore; Editing Pradeep Kurup) Keywords: COLONIALBANCGROUP/ (brenton.cordeiro@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: brenton.cordeiro.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* Hires Citigroup Global Markets as financial advisor
* Terminates stock purchase agreement with TBW
* Q2 loss widens
* Shares down 10 percent
July 31 (Reuters) - Colonial BancGroup Inc said Friday it is exploring options including a sale or merger and raised doubts on its ability to continue as a going concern, sending its shares down 10 percent.
The company also terminated a $300 million stock purchase agreement with Taylor, Bean & Whitaker Mortgage Corp as the parties failed to get necessary regulatory approvals by the July 31 deadline.
The financial services company, which posted its fifth straight quarterly loss, also said it was uncertain it would be able to maintain capital levels for its subsidiary Colonial Bank, as ordered by the Federal Reserve, Federal Insurance Deposit Corp (FDIC) and the state of Alabama.
Last month, Colonial's banking unit agreed to a cease-and-desist order with regulators, requiring the bank to increase capital levels and reduce problem assets, among other things.
The company said it was looking at options including a possible sale or merger of the company, selling its Nevada branches, sale of problem assets, reducing expenses, along with other alternatives.
The company said it engaged Citigroup Global Markets Inc as its financial advisor, and that it has held private management meetings with potential strategic acquisition candidates and private equity investment firms.
The company posted a second quarter net loss of $606 million, or $3.02 a share.
Shares of the Montgomery, Alabama-based company were down 10 percent at $0.55 in after market trading on the New York Stock Exchange.
(Reporting by Brenton Cordeiro in Bangalore; Editing Pradeep Kurup) Keywords: COLONIALBANCGROUP/ (brenton.cordeiro@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: brenton.cordeiro.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.