The ShinesRooms.com Provides Stock Research onKnight Capital Group Inc. and Jefferies Group Inc.
New York City, New York -- Investment brokerage sector is seeing a paradigm shift. While the sector is hyper competitive, it is also seeing a lot of M&A actions. A technical glitch proved almost fatal for Knight Capital Group Inc. (NYSE: KCG) which still has to recover completely. The company is now attempting a makeover and is all set to be acquired by Getco in a revival attempt. Jefferies Group Inc. (NYSE: JEF), on the other hand, successfully survived the economic crash. However, it is also in the merger talks with Leucadia.
Access our free reports onKnight Capital Group Inc. and Jefferies Group Inc.Traders can also connect to our Wall Street Trading Floor where our research desk and market pros are standing between 8:50 am to 4:15 pm ET at
Jefferies Group had a great 2012, but the New Year so far has not been so well. The investment firm is under attack for various reasons including excessive payment to its top executives. Jefferies had been widely praised for its low-risk profile during the financial crisis and though its management deserves the kudos for keeping the firm afloat, its $19 million payment to its CEO has not gone down well with its investors as well as the industry. The move is expected to have negative impact on not only the shareholders’ value but is also likely to hurt its bondholders.Jefferies Group Inc.free research is available today at
Jefferies is all set to be taken over by Leucadia. However, the details about the merger are still vague. Both companies are scheduled to hold their special meetings on February 28th. Leucadia is the biggest shareholder of Jefferies Group, whose stock is up 35 percent in the past 52 weeks. The future direction of the company is not yet clear. While Leucadia is a conglomerate, Jefferies may choose to retain its business model as the company is likely to remain under the same management.
Knight Capital plans to restructure its business and as the part of strategy, would reduce its global workforce by 5 percent. The investment brokerage firm would put an end to its correspondent clearing operations and merge its full services and institutional equity units. While the whole exercise would lead to Knight Capital taking a pre-tax charge of between $9 million and $11 million for the first quarter of 2013, it is likely to bring long-term cost benefits to the firm. Our free research report onKnight Capital Group Inc.can be downloaded upon registration at
Knight Capital’s stock is up 6 percent on a YTD basis. However, the company is still reeling under the impact of its technical snafu which led to the loss of $440 million in trading losses. As a result, Knight Capital finally inked a takeover deal with Getco for $1.4 billion. The consideration will be payable in cash and stock. It is likely to be finalized in the first half of this year. The merger will lead to the creation of a new publicly traded company and it will also bring about technological efficiencies. The news of the merger was taken positively by the market and its stock recouped its losses partly. The company stock was valued at $3.75 a piece for valuation purpose.
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