Marshall & Ilsley Prices $782 Million Stock Sale

MILWAUKEE (AP) — Regional bank Marshall & Ilsley Corp. said Wednesday it will raise at least $750 million in a stock offering, and could use some of the funds to repay part of the $1.7 billion it received earlier this year under the government's Troubled Asset Relief Program.

Many banks have generated hundreds of millions of dollars through stock offerings over the past several months. While the sales put pressure on the banks' share values, they underscore the improving conditions in the capital markets and the increasing demand for bank stocks.

Milwaukee-based M&I is selling 136 million shares at $5.75 each in a move to raise $782 million. Proceeds after underwriting discounts, commissions and offering expenses will total about $750 million. The offering follows a $550 million stock sale in June, as the bank continues to shore up its capital position.

M&I also has granted underwriters an option to purchase up to 20.4 million more shares if demand exceeds initial supply, which could generate up to $117.3 million more for the company.

M&I wasn't among the 19 largest U.S. banks to undergo the government's stress test analysis, so it wasn't ordered to raise additional capital. But analysts had still expressed concern over its capital levels.