(Reuters) - Raymond James Financial Inc (RJF.N) and Stifel Financial Corp (SF.N), dueling to buy brokerage Morgan Keegan, are finalizing their offers this weekend and a winning bidder could be announced as soon as next week, according to people familiar with the situation
I have doubts about the sale being comsummated anytime soon, if at all.
Only a desperate company would sell a division that contributes a solid return on investment for less than 10 time earnings, while the bank is doing so poorly. What does that leave the company? A bank that is doing poorly is all. So, would you want to own such a company when there are better alternatives?
I don't know what will happen at the open Monday, but the upside effect of this sale has already been factored into the stock price. The effect of the terms of sale on stock price will be either nothing (if the sale price meets expectations) or negative (if that price fails to meet expectations). The market rewards potential and punishes failure. At least, once the sale has been completed, we can move on to a new topic of conversation.