Jefferies to merge with largest shareholder |
| CNNMoney - Nov 12, 2012 |
Jefferies Group (JEF) said early Monday that it has agreed to merge with one of its largest shareholders in an all-stock deal, sending shares of the investment banks rallying as much as 20%.
Leucadia National (LUK), which owned a 29% stake in Jefferies ahead of the news, will offer 0.81 of a share of Leucadia's common stock for each Jefferies share.
News of the all-stock deal sent Jefferies' stock soaring Monday. Although shares were off earlier highs, the stock was still up about 11% mid-morning. Leucadia's stock, which initially gained about 2%, turned lower mid-morning.
Ahead of the Leucadia deal, Jefferies' stock was nearly flat for the year. The bank failed to partake in the broader stock market rally that's been particularly beneficial to bank stocks. Leucadia's stock has also struggled this year, losing more than 4% since January.
Leucadia operates a diverse group of businesses, from real estate to beef processing, lumber manufacturing and mortgage servicing.
Read Full Article from CNNMoney
- Posted: 2012-11-12 14:46:46
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