After months of speculation and one failed deal, on January 11, 2011, Raymond James Financial, Inc., announced that the firm entered into a stock purchase agreement to acquire Morgan Keegan & Company, Inc. and related affiliates from banking giant Regions Financial Corp. (RF) The cost of the deal was approximated at $930 million, making it the largest acquisition in the history of the publicly traded Raymond James Financial (RJF). Morgan Keegan will also pay Regions a dividend of $250 million before closing, pending regulatory approval, resulting in total proceeds to Regions of $1.18 billion.
According to sources, as part of the deal Regions will also indemnify Raymond James for all litigation matters related to pre-closing activities. In addition, Regions will receive the benefit of previously established reserves by Regions at Morgan Keegan. This is particularly important as Morgan Keegan still faces investor lawsuits and FINRA arbitrations pertaining to the marketing and sale of the proprietary RMK bond funds.
The attorney’s at Colling Gilbert Wright & Carter have investigated and litigated numerous investor suits regarding the RMK funds, including the flagship Select Intermediate Bond Fund. If you purchased any of the seven RMK bond funds, please contact our office for a free case evaluation.