Overview
- Japan’s Sumitomo Mitsui Financial Group has assembled a team to be ready for a potential move on Jefferies if its valuation weakens further, according to the Financial Times.
- Jefferies shares rose about 6% in Frankfurt trading after the report, reflecting investor bets on a possible deal.
- Reuters said it could not verify the FT story, and both Jefferies and SMFG did not provide immediate comment.
- The FT said any approach is not imminent, and it remains unclear whether Jefferies’ leaders would sell at a depressed price.
- Jefferies’ stock is down more than 36% this year after prior hits tied to the First Brands bankruptcy and the collapse of Market Financial Solutions, with investor lawsuits citing about $715 million in receivables owed to Jefferies’ Leucadia unit and LSEG data showing a market value of $8.17 billion versus SMFG’s $124 billion.