UnionBanCal Could See Higher Bid: Analysts

Amid the wreckage of the banking sector caused by the year-long credit crunch, one mid-size California player feels confident enough in its standing to reject a takeover offer.

Shares of UnionBanCal(UB Quote) traded modestly higher on Thursday, one day after the San Francisco-bank told shareholders to reject a $3 billion, or $63 a share, tender offer by its majority stakeholder, The Bank of Tokyo-Mitsubishi UFJ, a wholly-owned subsidiary of Mitsubishi UFJ Financial Group. The Japanese bank currently holds a 65% stake in UnionBanCal.

Analysts say the market expects the bid to move higher. The $63 a share price represents an 8.3% premium to Monday's closing share price of UnionBanCal -- the day before the offer was proposed. Shares were up 21 cents to $65.21 on Wednesday afternoon. ...