Regions Financial May Finance Morgan Keegan Sale

U.S. bank Regions Financial Corp. is offering as much as $200 million to help finance the sale of its Morgan Keegan brokerage unit, Reuters reported over the weekend, citing a Bloomberg story. Regions Financial is in talks with competing groups of private equity firms about a sale. The bank bought Morgan Keegan for $789 million in 2001 and disclosed plans to sell the division in June, Reuters wrote.

(Reuters) – U.S. bank Regions Financial Corp is offering as much as $200 million to help finance the sale of its Morgan Keegan brokerage unit, Bloomberg said citing people with knowledge of the matter.

Regions is in talks with two competing groups of private-equity firms seeking to buy the brokerage, people told the agency.

The bank aims to boost capital and pay back a U.S. bailout from the sale proceeds. A deal valued at more than $1 billion may be reached within weeks, according to the agency.

Regions Financial spokesman Mel Campbell declined to comment to Reuters on the Bloomberg report.

Regions bought Morgan Keegan for $789 million in 2001 and disclosed plans to sell the division in June. The company is yet to repay the $3.5 billion it received from the Troubled Asset Relief Program (TARP) after the financial crisis.