You see that ugly stock price for investment bank Jefferies? Ouch. One company getting buffeted (pun intended) by the Jefferies stock slide is Leucadia National Corp., a sprawling conglomerate some observers have compared to Warren Buffett’s Berkshire Hathaway, according to Deal Journal
Leucadia owns about 28% of Jefferies common stock, according to a September regulatory filing. At the end of 2010, the 56.5 million Jefferies shares owned by Leucadia would have been valued at $1.5 billion.
Today, after a 22% stock-price slide in the last five trading days and after an ugly year for most investment banks, the Leucadia stake has lost $804 million in value. Shares of Leucadia are down 4.8% today into an otherwise euphoric market.
According to FactSet Lionshares, more than one-quarter of Leucadia’s stock portfolio is in Jefferies shares. Leucadia and Jefferies also jointly own a firm that makes a market in junk debt and distressed securities…
Wait…wait, there’s more at http://blogs.wsj.com/deals/2011/11/03/tanking-jefferies-stock-drags-down-mini-berkshire/
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