UPDATE 1-Stifel sees further charges from Thomas Weisel deal

Tue Aug 10, 2010 11:16am EDT

* Sees $104.8 mln deferred compensation charge

* Sees 2010, 2011 getting hit by merger costs

* Shares fall 4 pct

Aug 10 (Reuters) - U.S. investment bank Stifel Financial Corp (SF.N) said it expects to incur a charge of $104.8 million from deferred compensation costs at Thomas Weisel, a firm it bought earlier this year.

Shares of the company fell as much as 4 percent in early trade on the New York Stock Exchange.

Stifel, one of the fastest-growing U.S. brokerages, said in a post-earnings conference call it expects merger-related costs to impact third-quarter earnings per share by as much as $2.88 per share.

The company expects these charges to hurt fourth-quarter and 2011 profit by 5 cents and 3 cents per share, respectively.

The announcements come a day after the brokerage posted a better-than-expected profit for the second quarter, helped by higher commissions, and growth in its asset management and investment banking units. [ID:nSGE6780JD]

Stifel, which has been snapping up bargains in the past year, opened up its wallet to buy struggling Thomas Weisel Partners Group for about $318.2 million in stock in April. [ID:nSGE63P0M3]

Shares of St. Louis-based Stifel were down 2 percent at $45.79 Tuesday morning on the New York Stock Exchange. They touched a low of $45.05 earlier. (Reporting by Anurag Kotoky in Bangalore; Editing by Prem Udayabhanu)

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