KBW Shares Jump on Stifel Takeover
NEW YORK (TheStreet) -- Boutique investment bank Stifel Financial (SF) is buying out specialized financial services brokerage firm KBW (KBW) for $575 million in a cash and stock deal.
KBW shareholders will receive $17.50 per share, consisting of $10 in cash and $7.50 of Stifel stock. Holders of restricted KBW shares will receive $17.50 of Stifel stock.
Shares of Stifel closed Friday at $31.91. Shares of KBW were up 6.6% in premarket trading.
The combined company provides Stifel with "an exciting opportunity to grow and become a market leader in the financial services sector," Stifel Chairman and CEO Ronald J Kruszewski said in a statement.
Stifel will gain access to $250 million excess capital on KBW's balance sheet upon merger. Annualized net revenues for the two companies are approximately $1.8 billion, based upon 2012 results through September 30, 2012. "This merger will allow KBW to focus on its strengths in the financial services sector while offering clients a greatly expanded array of products and services through the Stifel platform," Thomas Michaud, president and CEO of KBW, said in a statement. Stifel was advised by its own subsidiary Stifel Nicolaus. KBW was advised by its wholly-owned subsidiary KBW and BofA Merrill Lynch. -- Written by Shanthi Bharatwaj in New York.Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV
