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Sector Update: Financial

By: MT Newswires
Posted: 12/18/2013 1:46:00 PM
Referenced Stocks: PKY;TPGI

Financial stocks are little changed, with the NYSE Financial Sector Index up less than 0.1% and the S&P Financial 100 Index falling about 0.2%.

In company news, Parkway Properties Inc. ( PKY ) is up 0.8% this afternoon at $17.39 a share after shareholders at Thomas Properties Group, Inc. ( TPGI ) overwhelmingly voted in favor of the proposed merger of the real estate investment trusts, clearing the way for the deal to close on Dec. 19.

Around 99% of the votes cast at the special meeting of TPGI shareholder sided with the merger agreement, representing about 87% of the company's outstanding shares.

The deal calls for TPGI shareholders to receive 0.3822 of a PKY share for each share they now own. Based on TPGI's 58.6 million shares outstanding and PKY's current share price, the deal works out to be worth nearly $391 million.

TPGI shares are up about 0.6% at $6.65 each.

In other sector news,

(+) CNO, (+0.5%) Increases stock buyback program by $300 mln. Through Sept. 30, the insurer had repurchased $221.6 mln of its shares and was expecting to buy back another $28.4 mln in Q4. It had $128 mln remaining under its previous authorization.

(-) BNCN, (-1.2%) Paring steeper losses made earlier in session after annoucing plans to acquire South Street Financial Corp and Community First Financial Group Inc for an undisclosed amount. BNCN said the transactions should boost its per-share earnings by 12% over current levels in 2015.