Leucadia National Corp. (LUK) agreed to buy the portion of Jefferies Group Inc. (JEF) it doesn't already own for about $2.76 billion.
Investors will receive 0.81 Leucadia share for each Jefferies share they own, the companies said today in a statement, valuing the entire company at $3.59 billion, based on data from the company's most recent 10-Q regulatory filing. Jefferies management will run the firm, according to the report.
Leucadia, which already holds about 28.6 percent of New York-based Jefferies, boosted its stake in November as Jefferies's stock slid on investor concern it may be burned by Europe's sovereign-crisis. The combined firm, to be led by Jefferies Chief Executive Officer Richard Handler, will make the investment bank's balance sheet more resilient, helping it weather and take advantage of market turmoil, the firms said.
"For Jefferies, the deal may allow them to grow and invest without market pressures in the short term," said Christopher Wheeler, an analyst at Mediobanca SpA in London.
The deal values Jefferies about 24 percent higher than its closing price on the New York Stock Exchange on Nov. 9. Jefferies has climbed 3.8 percent this year, after dropping 48 percent in 2011. Leucadia has declined 4.1 percent this year.
Handler also will remain CEO of Jefferies as the transaction with New York-based Leucadia is completed in the first quarter, the companies said.