Holding company, Leucadia National Corp.( LUK ) reported on Monday that it will be acquiring investment bank, Jefferies Group, Inc.( JEF ) in early 2013.
The board of directors from both companies have approved Leucadia's acquisition of the firm, which will result in Jefferies shareholders receiving 81 cents a share of Leucadia stock for every share of JEF that they own.
Leucadia, which already owns 28% of Jefferies, plans to complete the acquisition in the first quarter of 2013.
Jefferies has been run by Richard B. Handler since 2001. Handler will now be the chief executive officer of Leucadia.
Following the acquisition, Jefferies will be Leucadia's largest business, and it will continue to operate as a full service investment bank.
Jefferies shares were up $2.73, or 19.13%, and Leucadia National shares were up 20 cents, or 1.15% during premarket trading Monday.
Jefferies Group, Inc.( JEF ) and Leucadia National Corp.( LUK ) are not recommended at this time, holding Dividend.com DARS™ Ratings of 2.8 and 2.9 out of 5 stars respectively.
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