Gleacher & Co, a small broker-dealer whose shares have plunged 43% in the past 12 months, said it is no longer pursuing short-term fixes for its low share price, prompting investor speculation that it is close to a sale.
Reuters reports that Chief Executive Thomas Hughes was asked on an investor call Thursday if he is considering a reverse stock split or tender offer to lift Gleacher shares above a dollar to avoid delisting by the Nasdaq Stock Market. Three months ago, Hughes identified saving the listing as a priority.
'We've chosen not to proceed with any of those activities for reasons that you probably understand', Hughes said.
In the meantime, no news yet on a plan to save Rochdale Securities.
The Wall Street Journal has reported that, according to its sources, the Stamford, Conn.-based brokerage was looking for a loan or a merger earlier this week, after an employee's alleged unauthorized purchases of Apple shares left the company in what President Daniel Crowley called a 'negative capital position'.
The trade is thought to have been worth roughly $1bn. Rochdale had $3.4m in capital at the end of 2011, according to company filings.
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