Gerova Financial Group (NYSE:GFC) spiked up 28.33% to trade close at $27.59 after Financial Times reported that Seymour Pierce and New York-based Ticonderoga Securities is in advance talks with the company for a possible merger.
Shares of diversified financial services company climbed to the day high of $27.93 with 52 week range of $6.15-$92.50. At current market price, the market capitalization of the stock stands at $736.10 million and volume of 166,190 shares has been traded yesterday. The stock is currently below its 50 day & 200 day moving average of $29.03 & $36.00 respectively.
The Company will acquire 100% of Seymour Pierce which provides investment banking, equity research, sales and trading, private client asset management services to middle market companies and institutional investors for around 40 million pounds and the consideration is expected to be paid in Gerova Shares. After the completion of the acquisition, the combined entity will be called Seymour Pierce Inc and will trade on the New York Stock Exchange under the new ticker symbol "SPI."
According to financial times report, the combined entity would be involved in investment banking, asset management and insurance and also said the deal would enable Seymour Pierce to make further acquisitions of London's smaller stockbrokers.
The Company also said that from January 1, 2011 Seymour Pierce Executive Chairman and CEO, Keith Harris will become Chairman and CEO of Gerova.
Ticonderoga specializes in US domestic equity trading, equity research, equity derivative execution and research, international market making and risk arbitrage.
GEROVA Financial Group, Ltd. operates as a property and casualty insurance and reinsurance company in Barbados. It primarily focuses on life and annuity reinsurance.
Article published by Wall Street Grand. Visit the Wall Street Grand Club today. For our full disclosure please visit - http://www.wallstreetgrand.com/disclosure.html
