NEW YORK (
was among the winners of the financial sector after the company announced plans to repay $950 million in bailout funds to the U.S. government.
shares rose after the insurer said it will offer $335 million of common stock and up to $750 million of senior notes to fully repurchase the $950 million of Lincoln Financial's preferred shares issued to the U.S. Treasury under the Treasury's Capital Purchase Program.
Following the repayment, the Treasury will continue to hold warrants to purchase approximately 13 million shares of Lincoln Financial's common stock at an exercise price of $10.92 per share. The company said it does not intend to repurchase the warrants.
Lincoln National shares were lately up $1.64, or 6.2%, to $28, making it one of the top percentage gainers in the financial sector Monday.
Among other insurer stocks trading higher,
rose 5% to $25.22,
American International Group
gained 4.7% to $36.72, and
tacked on 1.9% to $41.86
Most other U.S. bank stocks were trading higher.
was up 1% to $3.92,
Bank of America
gained 0.7% to $15.70,
advanced 0.5% to $136.25,
inched 0.1% higher to $38.13, and
was up 0.1% to $27.86
On the downside,
slipped 0.1% to $25.97
The movement in bank stocks came as
put forth by Sen. Blanche Lincoln (D-Ark.) have a chance at passing. Lincoln's plan would likely require banks to spin off their swaps businesses, which represent the bulk of their derivatives operations.
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Dan Freed reports that the overall impact of the changes on banks is still somewhat unclear. But as Lincoln's proposals gain steam, the likelihood that it will be as bad for giant institutions like Goldman, JPMorgan, Citigroup and Bank of America as many originally imagined appears to be diminishing, Freed says.
Marsh & McLennan
shares rose 4.1% to $22.99 after its Mercer subsidiary agreed Friday to pay $500 million to Alaska to settle a lawsuit over the state's unfunded employee pension plans.
-- Written by Robert Holmes in Boston
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