NEW YORK ( TheStreet) -- For some on Wall Street, the world may end not with a bang but a whimper.
Struggling independent investment bank Gleacher & Co. (GLCH) said in an 8-K filing with the Securities and Exchange Commission on Friday it faces a delisting on Nasdaq (NDAQ) after trading for sub-dollar prices for most of the last six months.
In an age where regulators push for rules to govern the wind-down of 'too big to fail' investment banks, Gleacher's fate appears to have little consequence for financial markets.
Still, there may be hope for the investment bank, which advises on M&A, restructuring and recapitalization deals, and is also known on Wall Street for a specialty in trading complex fixed income products like mortgage and asset backed securities, in addition to interest rate swaps.In late August, the company said it had hired an investment bank to explore strategic alternatives, which could lead to asset sales, an equity infusion or even put the firm in the hands of a more stable financial partner. Meanwhile, the company may yet have time and options to fall into compliance with Nasdaq's listing requirements. Gleacher said on Friday that its board of directors has approved a reverse stock split, which still faces shareholder approval. The proposed split, either 1 for 10 shares or 1 for 20 shares, would put Gleacher's share prices in the $8-to$16 range, according to KBW analyst Joel Jeffrey. Given Gleacher's imminent delisting - it has roughly 180 days to regain compliance -- and longer term strategic goals, Jeffrey sees a stock split as Gleacher's best immediate alternative. "While we continue to believe that a sale of the company is a possibility, Friday's announcement does not give us confidence that any deal is immanent or that a tender offer by the company for its shares is likely in the near term," writes Jeffrey, in a Monday note to clients. Gleacher said in its 8-K filing, it will ask for a hearing with Nasdaq to approve a proposed stock split that would face shareholder approval in May. "
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV