Markets

Sector Update: Financial Stocks Holding On To Small Gains; Fortegra Financial At 4-Year High After Accepting $218 Mln Buyout Offer

Top Financial Stocks

JPM -0.16%

BAC -0.20%

WFC -0.02%

C +0.13%

USB +0.10%

Financial stocks were narrowly higher with the NYSE Financial Sector Index climbing about 0.1% and the S&P Financial 100 Index inching less than 0.1% higher.

In company news, Fortegra Financial ( FRF ) surged to its best share price in over four years Tuesday after accepting a $218 million buyout offer from Tiptree Financial ( TIPT ).

Under terms of the transaction, TIPT will pay $10 in cash for each FRF share. The agreement also includes a 30-day go-shop period where FRF can actively solicit and negotiate alternative offers. The current deal is expected to close by late 2014 or early 2015.

FRF shares were ahead about 40.4% at $9.86 apiece, just 2 cents under their highest share price since May 2011. TIPT also was higher today, climbing about 0.1% to match its session high at $7.23 a share.

In other sector news,

(+) LM, (+0.6%) Reports $693 bln under management at the end of July. Fixed income outflows were $3.8 bln last month while equity outflows totaled just $400 mln during July.

(-) TCAP, (-3.0%) Prices underwritten public offering of upsized 4.3 mln shares at $26.85 apiece, a 2.85% discount to Monday's closing price for the stock. The deal added an extra 300,000 shares shortly before pricing.

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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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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