Shares of Jefferson Pilot Corp., a Greensboro, N.C., insurance company with a broadcasting business, have shot up 8% since the U.S. House of Representatives passed a proposal that would make a purchase of the company more palatable for a bank.
Jefferson's stock rose to $71.625 Monday, from $66.3125 on June 30, the day before the House passed a tailor-made amendment to its financial modernization bill. The amendment would eliminate a potential problem with a Federal Communications Act rule that would prevent a banking company from expanding its broadcast arm to 15% of its operating revenue.
Jefferson's broadcast arm-which includes television rights to Southeastern Conference college basketball games-generates 8% of its revenue. The company did not respond by press time to requests for comment.
Reconciliation of the House and Senate bills for financial services modernization could come as early as August.