Gleacher in early talks about possible merger

Gleacher in early talks about possible combination; existing fixed income business

Associated Press

NEW YORK (AP) -- Gleacher & Co. may eliminate up to about 160 jobs, the Investment bank said Wednesday, as it exits its fixed income business.

The news comes less than a month after Gleacher revealed that its finances had worsened and that it was again considering the sale of the company. The company said Wednesday that it's in early talks with another party about doing just that.

Shares of the New York company slipped 3 percent in early trading.

In March, Gleacher said in a regulatory filing in March that it continued to lose members of its senior management, along with key clients, due to its circumstances. Gleacher is now seeking a possible sale of the company, or the sale of assets.

Gleacher agreed to jettison most of its ClearPoint home mortgage business for an undisclosed sum in February, essentially taking itself off of the selling block. But in March, it revealed that sales talks were not dead.

On Wednesday Gleacher said that it was exiting its MBS & Rates and credit products businesses. The company said its plan did not include its other business operations, such as investment banking.

Gleacher & Co. Inc. is expected to hold its annual shareholders meeting on May 23.

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