Sector Update: Financial


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Financial stocks were broadly lower Tuesday, with the NYSE Financial Sector Index sinking about 1.1% and the S&P Financial 100 Index falling 0.9%.

In company news, First Midwest Banc ( FMBI ) shares were narrowly higher Tuesday after the bank holding company announced a deal to acquire Great Lakes Financial Resources ( GLFL ) for $58 million in cash and stock.

The transaction calls on FMBI to pay $112.50 in cash and up to $175 in shares of its stock - or $287.50 overall - for each GLFL share, although the exact number of shares will be determined by FMBI's volume-weighted share price during the 10 trading before the deal closes. The deal also is contingent on regulatory and GLFL shareholder approvals.

FMBI shares were up nearly 1.0% at $17.60 apiece in mid-day trade, or 5 cents under its session high. The stock has a 52-week range of $14.17 to $18.49 a share, climbing slightly more than 22% over the past 12 months.

OTC-traded GLFL shares jumped nearly 86% to $353.00 apiece, easing slightly from its new all-time high of $358.00 a share, up $168.00 each.

In other sector news,

(+) PHH, (+2.9%) Announces plans to buy back up to $450 mln of its stock, redeem 9.0% senior notes due 2016, rework its mortgage business and invest in growth initiatives using $821 mln in net proceeds from the sale of its Fleet Management Services Business.

(-) LTS, (-0.6%) Acquires Dalton Strategic Investment Services Inc. for undisclosed sum. The Knightstown, Ind.-based brokerage has about 60 advisors working in 18 states and around $950 mln in client assets under management.

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This article appears in: Investing , Commodities
More Headlines for: FMBI , GLFL

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