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Raymond James in Lead to Buy Morgan Keegan

January 10, 2012
Raymond James Financial is in the lead to buy brokerage Morgan Keegan from Regions Financial Corp in a deal that would bolster the firm's prowess in trading securities for customers, according to people familiar with the situation.  Raymond James emerged as the potential winner after a second bidder, Stifel Financial Corp, dropped its offer price for Morgan Keegan to below $1 billion, worrying whether enough brokers would stay after a purchase closed, these people said Monday.
Morgan Keegan is expected to be valued at about $1.2 billion, including a $250 million cash dividend that the brokerage will pay Regions prior to a sale. Regions bought Morgan Keegan in 2001 for $789 million.  A deal had not been reached late Monday, but people familiar with the situation said final terms were being negotiated and a sale could be announced this week. Talks could, however, still fall apart. Officials at the companies involved either declined to comment or could not be reached for comment.  For more info, [Reuters 1/10/12]