Winners & Losers
Thursday's Financial Winners & Losers
Sarina Penn
05/31/07 - 04:36 PM EDT
Updated from 2:14 p.m. EDTThe financial sector spent much of the morning in positive territory Thursday amid M&A news, though it lagged behind the Nasdaq along with the two other major indices.
A.G. Edwards (AGE Quote) was among the takeouts, vaulting 14.3% to $88.16 after Wachovia (WB Quote) agreed to pick it up for some $89.50 per share in cash and stock -- a 16% premium to the St. Louis broker's latest close. Wachovia slipped 0.7% to $54.19.
Other brokers rode high on A.G. Edwards' coattails in heavy trading, among them Raymond James Financial (RJF Quote), up 7.3% to $33.31; Stifel Financial (SF Quote), up 8% to $60.21; and BlackRock (BLK Quote) up 4.9% at $153.54.
Also among the climbing brokers was Jefferies (JEF Quote), on the heels of two announcements. The New York firm acquired LongAcre Parters, an M&A advisor in the European media and online sector, for an undisclosed sum. Jefferies also said chief financial officer Joseph Schenk will retire by year-end. Its shares jumped 4.7% to $30.64.
Florida's Fidelity National Financial (FNF Quote), meanwhile, agreed to buy information-services firm Ceridian (CEN Quote) jointly with private-equity firm Thomas H. Lee Partners for $5.3 billion in cash, or $36 a share. Fidelity gained 47 cents, or 1.7%, to $28.04; Ceridian added 3.5% to $35.37.
Among the day's financial losers, however, was health-insurer and managed-care provider WellPoint (WLP Quote). Chief Financial Officer David Colby resigned under pressure from both the current and incoming CEOs, as well as from the company board, having "violated the company's code of conduct." WellPoint added that his actions weren't illegal and were of a "non-business nature," so it provided no further details. Wayne DeVeydt has replaced Colby. Shares were off 3.5% to $81.41.