Sector Update: Financial Stocks Mixed in Late Trade; China Housing & Land Development Falls After Scrapping Going-Private Transaction
Top Financial Stocks
Financial stocks were mixed in late trade today with the NYSE Financial Sector Index declining about 0.1% and the S&P Financial 100 Index climbing 0.2%.
In company news, China Housing and Land Development ( CHLN ) was set to finish with a steep loss Monday, earlier falling to a nearly two-year low after today pulling the plug on its proposed going-private transaction, citing changing financial, operational and business conditions.
The proposed transaction had called on the real estate developer enacting a 1-for-50,000 reverse stock split and paying shareholders $1.75 for each of their pre-split shares instead of issuing fractional shares.
The CHLN board had previously signed off on the deal in late August but this weekend reversed that decision, explaining ongoing trends in China's real estate market requires the company to maintain a more conservative financial position and instead focus on supporting current and planned projects.
CHLD American depository shares were down nearly 10% at $1.10 apiece, climbing just 1 cent above its lowest share price since December 2012. Through Friday's close, the stock had fallen over 59% over the past year.
In other sector news,
(+) AMRE, Agrees to $763 mln buyout offer from Edens Investment Trust, with AMRE shareholders receiving $26.55 in cash for each share they now own. The deal is expected to close by March 31, 2015.
(-) RCAP, Terminates agreement to acquire Cole Capital Partners and Cole Capital Advisors from American Realty Capital Properties Inc. ( ARCP ). ARCP declines about 6.4%.
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