The Birmingham, Alabama-based regional bank will also receive a $250 million dividend before the closing, pending regulatory approval. The deal is expected to close in the first quarter.
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Regions has been trying to sell Morgan Keegan since the summer in a move that could help it repay $3.5 billion it owes the U.S. government in bailout aid. The auction of Morgan Keegan, based in Memphis, Tennessee, has seen a series of twists and turns, as both rivals and private equity firms jockeyed for the business.