Leucadia to Buy Jefferies (Update 1)
Additional information added throughout.
The combined company will have over $9 billion of shareholders' equity, according to a statement released before market open.
Under the terms of the deal, Jefferies' shareholders (other than Leucadia, which currently owns about 28.6% of the Jefferies outstanding shares) will receive 0.81 of a share of Leucadia common stock for each share of Jefferies common stock they hold. P/>Leucadia currently owns approximately 30% of Jefferies' outstanding shares.After the deal is completed, Jefferies which will be the largest business of Leucadia, a conglomerate often referred to on Wall Street as "Little Berkshire." Jefferies will continue to operate as a "full-service global investment banking firm in its current form," according to a company statement, and retain a separate credit rating from its parent. "This merger will allow us to operate from a position of even greater strength, take advantage of opportunities that arise in and around the business of Jefferies, and continue Leucadia's longstanding practice of smart value acquisitions and investments," said Jefferies executive committee chairman Brian Friedman in a statement. "Our substantial combined equity base, ample liquidity and long-term focus will all support meaningful long-term value creation for Leucadia and Jefferies' shareholders." The merger is expected to close during the first quarter of 2013. --Written by James Rogers in New York. Follow @jamesjrogers >To submit a news tip, send an email to: email@example.com.
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