Stifel may buy Thomas Weisel Partners for $300 mn - WSJ

April 26 Mon Apr 26, 2010 2:00am EDT

April 26 (Reuters) - U.S. investment bank Stifel Financial Corp (SF.N) may buy its rival Thomas Weisel Partners Group Inc TWPG.O in an all-stock deal worth about $300 million, the Wall Street Journal said.

Under the deal, Stifel will exchange 0.1364 share for each outstanding Thomas Weisel Partners share. Based on Stifel's closing price Friday of $55.74, the deal values Weisel at $7.60 a share, or about a 74 percent premium to the stock's closing price of $4.36 Friday, the newspaper said.

The price also reflects restricted stock and warrants that Thomas Weisel will receive, the paper said.

Stifel focuses on advising mostly middle-market clients on deals and underwriting issues. The Thomas Weisel deal may allow Stifel to harness Weisel's brand and expertise when merger deals in the technology sector revive, the Journal said.

Stifel Financial and Thomas Weisel Partners could not immediately be reached for comment by Reuters outside regular U.S. business hours. (Reporting by Sakthi Prasad in Bangalore; Editing by David Holmes)