Leucadia-Jefferies Merger - Analyst Blog

The merger of Leucadia National Corporation (LUK) and Jefferies Group, Inc. (JEF), pending since November 11, 2012, received a green signal from their respective shareholders in a meeting held on February 28, 2013. The merger will consummate on March 1, 2013.

As per the terms of the merger agreement, one common share of Jefferies will be converted into 0.81 share of Leucadia’s common share. Leucadia already owns a 28.6% stake in Jefferies and intends to issue approximately 117.7 million of its common shares in exchange of Jefferies’ share.

Following the completion of the merger, roughly 35.2% of Leucadia’s shares will be held by Jefferies’ shareholders while Jefferies will be converted into a limited liability company, Jefferies Group LLC, which will become a wholly-owned subsidiary of Leucadia.

Over the years, Leucadia has grown through acquisitions and divestitures. Leucadia continuously evaluates the retention and disposition of its existing operations and looks for profitability and new acquisitions, especially assets and companies that are in trouble so that those can be taken over and made into a profitable deal. Jefferies’ merger is likely to open up more investment opportunities for Leucadia and be a long-term growth booster.

Leucadia is engaged in beef processing, manufacturing, gaming entertainment, real estate activities, medical product development operations and various other investment-related activities in the United States. Other major players in the industry are China Merchants Holdings (International) Company Limited (CMHHY), Jardine Strategic Holdings Ltd (JSHLY) and Koninklijke KPN N.V. (KKPNF), each with a Zacks Rank #1 (Strong Buy).
 

CHINA MERCHANTS (CMHHY): Get Free Report

JEFFERIES GP-NW (JEF): Free Stock Analysis Report

JARDINE STRATEG (JSHLY): Get Free Report

KONIN KPN NV (KKPNF): Get Free Report

LEUCADIA NATL (LUK): Free Stock Analysis Report

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