The Treasury Department is to sell the 1.2 million-plus warrants it holds in M&T Bank's (NYSE: MTB ) common stock, Treasury announced in a statement. The sell-off will be in the form of an auction, which is to take place tomorrow, Dec. 11.
Treasury received the warrants as part of the regional banking group's participation in the financial crisis-era TARP government bailout program. Treasury also received equity in the company, which it has also been divesting. This past August, it auctioned off more than $381 million in M&T preferred stock.
The auction of the warrants will open at 8 a.m. ET and close at 6:30 p.m. Bidders will be allowed to place bids at any price above the minimum of $23.50 per warrant. Treasury said. The bids must be in increments of $0.25.
Deutsche Bank (NYSE: DB ) is the only book-runner for the offering.