UPDATE: Oppenheimer Moves to Not-Rated on Jefferies Group Following Announced Merger
Oppenheimer commented, "In keeping with firm policy, we are changing our opinion on JEF to Not Rated from Perform as the stock has become primarily an arbitrage situation. While we did not predict this merger, in retrospect it makes a lot of sense and one should have seen it coming. LUK owns 29% of JEF and has been involved with them in a HY joint-venture since 2000 and as a major shareholder since 2008. Based on the pre-open share prices, the 0.81 share consideration amounted to a 24% premium to JEF shareholders but we doubt that was the primary motivation for the deal."
Jefferies Group closed at $14.27 on Friday.
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