Stifel Financial Corp. is in exclusive talks to buy Regions Financial Corp.'s Morgan Keegan brokerage after prevailing over private-equity bidders, said people with knowledge of the matter.
Stifel, of St. Louis, remains days or weeks away from agreeing to an acquisition and may not reach a deal, said the people, who spoke on condition of anonymity because the discussions are private. Regions dropped talks with two groups of buyout firms, one made up of Carlyle Group and Blackstone Group LP, and the other made up of Thomas H. Lee Partners LP and Aquiline Capital Partners LLC, the people said.
A combination would unite two of the largest U.S. regional brokerages, with a combined work force of about 3,000 financial advisors. It would be the biggest deal ever for Stifel's chief executive, Ron Kruszewski, who has quintupled revenue since 2005 through acquisitions. Regions is seeking a sale of Morgan Keegan to help boost capital and repay a $3.5 billion U.S. bailout.
