Financial Shares Rising In Market Rally; Tower Financial Soars on Old National Buyout

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Top Financial Stocks

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Financial stocks are broadly higher, with the NYSE Financial Sector Index advancing 0.9% and the S&P Financial 100 Index climbing 1.1%.

In company news, Tower Financial ( TOFC ) is up more than 45% to $22.71 a share, earlier setting a 52-week high of $23.24 after agreeing to be bought out by Old National Bancorp ( ONB ) in a cash and stock merger valued at $107.7 million.

TOFC shareholders will receive 1.2 shares of ONB common stock as well as $6.75 in cash for each share of TOFC common stock they now own. Based upon the Sept. 5 closing price of $13.52 per share for ONB common stock, the deal implies a price of $23.38 for each TOFC share.

The transaction is expected to close during Q114. ONB shares have reversed early declines and are now up 0.7% at $13.86 apiece.

In other sector news,

(+) JPM, (+1.8%) CFO Marianne Lake says the bank will boost its litigation reserves by more than $1.5 bln to help cover a "crescendo" of potential legal claims.

(-) STWD, (-4.0%) Expects total gross proceeds of $607.5 mln from the sale of 25 mln shares in a public offering priced at around $24.30 a share.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

Referenced Stocks: ONB , TOFC

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