Eldorado Bancshares Stock Rises on Sale Announcement

Eldorado Bancshares Inc.’s stock jumped 48% Friday, a day after the Laguna Hills holding company said it has agreed to be sold to a Utah bank in a stock swap worth $190 million. The price to be paid by Zions Bancorporation in Salt Lake City--$13.38 a share--marked a 55% premium over Eldorado’s stock price Thursday. Eldorado shares shot up to a 52-week high of $13 before closing at $12.75, up $4.13. Zions shares fell $1.16 to $57. Both stocks trade on the Nasdaq market. Zions, which previously acquired Sumitomo Bank and renamed it California Bank & Trust, will add $1.4 billion in assets to its existing portfolio of $6.9 billion in loans and other investments. The 24 branches in Eldorado’s two subsidiaries, Eldorado Bank and Antelope Valley Bank, will be merged into California Bank’s 75-office network.