Jefferies to sell 14% stake
Leucadia National Corp. has agreed to acquire a 14% stake in Jefferies Group Inc. and receive two seats on the bank’s board of directors.
Leucadia National Corp. has agreed to acquire a 14% stake in Jefferies Group Inc. and receive two seats on the bank’s board of directors, according to a filing with the Securities and Exchange Commission yesterday.
Leucadia National will exchange 10 million shares of its own stock for 26.6 million shares of Jefferies’ stock and $100 million, the SEC filing stated. Both companies are based in New York.
Jefferies announced yesterday that its first-quarter earnings saw a net loss of $60.5 million, or 43 cents a share, compared with a net income of $62.3 million, or 42 cents a share, in the year-ago quarter.
Last week New York-based Fitch Ratings Ltd lowered its ratings outlook for Jefferies Group to negative from stable due to a projected weaker 2008 earnings outlook (InvestmentNews April 16).
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