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Citigroup's reinstatement of its dividend was a surprise given that executives had been saying for weeks they didn't expect the company to start returning capital to shareholders until 2012.
March 21
BankAtlantic Bancorp Inc. in Fort Lauderdale, Fla., said Tuesday that it was planning a 1-for-5 reverse split of its class A and B common stock.
As of April 29, the $3.8 billion-asset company had 61,982,971 outstanding class A shares and 975,225 shares of class B stock. The reverse split will be effective after the market closes on Oct. 14. The class A stock will begin trading on a spilt-adjusted basis beginning Oct. 17.
No fractional shares will be issued during the reverse stock split and any fractional share will be rounded up.
BankAtlantic did not say in a news release why it was pursuing a reverse stock split, but companies typically do so to satisfy listing requirements or boost the share price. Many institutional funds are barred from holding stocks that trade below $5. Earlier this year, for example, Citigroup Inc. completed a 1-for-10 reverse stock split that increased its price per share from roughly $4.40 per share to around $44.
BankAtlantic's shares have traded at below $1 per share for much of this year and have lost nearly 30% of their value since July 1. The shares were trading at 68 cents late Tuesday morning, down 5% from Monday's closing price.
