Top Financial Stocks
Financial stocks were moderately lower today, with the NYSE
Financial Sector Index dropping less than 0.4% while financial
companies in the S&P 500 Index also were under 0.4% lower.
In company news, IHS Inc. (
) is moving from a perch in the Rocky Mountains into The City, with
the U.S. financial information and analytics company today saying
it will pay $13 billion to buy British rival Market Ltd (
) and move the combined companies to London to take advantage of
lower tax rates in the UK.
Following completion of the all-stock transaction, IHS
shareholders will own about 57% of the company to be known as IHS
Markit, with Markit shareholders holding the remaining 43% stake.
The company headquarters will move to London's financial district,
more colloquially known as The City, although some operations will
remain at IHS's current home base in Englewood, Colo.
IHS Markit today said it expects to a tax rate in a low-to-mid
20% range compared with IHS' 35% yearly tax range in the United
States. The companies generated a combined $3.3 billion in revenue
and around 1.5 billion in annual adjusted earnings before interest,
taxes, depreciation and amortization during fiscal 2015. They also
see little overlap between the firms, with IHS tending to work with
corporate customers while Markit provides data to Wall Street
IHS shares were up more than 8% at $119.15 apiece, previously
topping out at $119.44 a share. MRKT was up almost 12% at $32.94
each, just 7 cents under their session high.
In other sector news,
(+) ARR, (+2.3%) Establishes final cash tender price of $7.18
per share in its purchase of Javelin Mortgage (
). The tender offer is slated to expire a minute before midnight on
(-) OXLC, (-2.4) Board authorizes a new stock buyback program
for up to $25 mln of its outstanding Series 2023 7.50% term
preferred stock and for another $25 mln of its Series 2024 8.125%
term preferred stock.