Bank of Queensland has entered a trading halt, requesting two consecutive halts for up to four days in order to execute a proposed capital raising for a potential acquisition.

Street Talk reported earlier today Bank of Queensland was closing in on ME Bank and the regional lender had been tapped for a final round of exclusive talks after making a $1.3 billion bid.

The talks were expected to be the final stage of ME Bank’s auction, run by Macquarie Capital and a deal was expected to be signed in the coming days.

Bank of Queensland’s equity raising would comprise an accelerated non-renounceable pro-rata entitlement offer and a placement to institutional investors.

The trading halt is expected to remain in place until the earlier of an announcement to the market on the ASX in relation to the outcome of the institutional offer, or the commencement of trading on February 25.