Alliance Financial plans $25 million stock sale

Alliance Financial plans to sell $25 million in new stock to boost capital reserves

• On 4:40 pm EST, Monday November 2, 2009

SYRACUSE, N.Y. (AP) -- Alliance Financial Corp. on Monday said it plans to sell $25 million in new stock to boost its capital reserves.

The shares will be issued under an existing shelf registration filed with the Securities and Exchange Commission.

Alliance, which operates 29 branches in upstate New York, said it expects to use the net proceeds for general corporate purposes, which may include adding capital to the bank and other subsidiaries, paying down or refinancing debt, possible acquisitions and other investments.

Sandler O'Neill and Partners will serve as sole underwriter. The underwriter will have a 30-day option to purchase up to an additional 15 percent of the offered amount.

Alliance shares fell $2.74, or 10.5 percent, to $23.30 in afternoon trading.