Gleacher & Co Announces Exit of Fixed Income Business effective immediately; co is engaged in preliminary discussions with a third party regarding a potential business combination (shares halted) (GLCH) 0.69 :
Co announced that it will exit its MBS & Rates and Credit Products businesses effective immediately. Exiting these businesses, together with associated rightsizing of administrative and other support personnel, could impact up to approximately 160 employees. The plan does not include the Company's other business operations, principally investment banking.
The Company also announced that it is engaged in preliminary discussions with a third party regarding a potential business combination. There can be no assurance that these discussions will result in a transaction.
Finally, after having reopened the period during which stockholders of the Company could submit proposals for nominations to the Company's Board of Directors, the Company has received a submission from Clinton Relational Opportunity Master Fund, L.P., a stockholder of the Company, of a slate of individuals, including Thomas Hughes, the Company's Chief Executive Officer and a current director, that it intends to nominate for election to the Company's Board of Directors at the Annual Meeting of Stockholders scheduled for May 23, 2013. If elected, these nominees would together constitute the entire Board of Directors.
