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Business Observer Thursday, Dec. 22, 2011 8 years ago

RayJay may buy $1.3B brokerage

Raymond James is said to be bidding on Regions' Morgan Keegan unit.

ST. PETERSBURG -- Raymond James Financial Inc. (symbol: RJF) “resumed talks” with Regions Financial Corp. regarding the purchase of its brokerage subsidiary, Morgan Keegan & Co., according to Bloomberg News.

Regions had been negotiating exclusively with St. Louis-based Stifel Financial Corp., but that exclusivity period has expired, Bloomberg's Zachary Mider says.

Headquartered in Memphis, Tenn., Morgan Keegan & Co. posted more than $1.3 billion in revenues in 2010. The firm has more than 3,100 employees, and operates a network of 300 branch locations.

Of the two interested firms, Raymond James is the larger in terms of 2010 revenues, with nearly $3.4 billion in business generated compared to nearly $1.4 billion for Stifel. The St. Petersburg-based financier also has more cash on hand, with nearly $400 million on its balance sheet at the end of September, compared with roughly $250 million for Stifel.

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