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Financial Sector Update for 03/21/2016: IHS,MRKT,ARR,OXLC


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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. ( IHS ) 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 ( MRKT ) 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 baks.

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 ( JMI ). The tender offer is slated to expire a minute before midnight on April 1.

(-) 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.

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

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This article appears in: Investing , Banking and loans
Referenced Symbols: ARR , OXLC


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