News Summary: Stifel Financial to buy rival KBW
NEW YORK (AP) — THE DEAL: Stifel Financial is buying KBW in a deal that the companies value at more than $575 million, creating a middle-market investment bank focused on the financial services industry.
THE TERMS: Shareholders of New York's KBW Inc. will receive $10 per share in cash and $7.50 per share in Stifel common stock. Holders of certain restricted KBW shares also will receive $17.50 in Stifel common stock.
THE BIG PICTURE: The premium on KBW could be considered paltry, signaling a shrinking industry and a tough environment for brokerages on Wall Street and those seeking jobs there.