Societe Generale To Buy Most Of Futures Activities Of Jefferies' Bache Business

(RTTNews) - Jefferies Group LLC (JEF) announced that it has entered into a definitive agreement for Societe Generale S.A. (SCGLF.PK, SCGLY.PK) to acquire most of the futures activities of Jefferies' Bache business. A majority of the client activities currently serviced by Bache will be transferred to Societe Generale.

Jefferies estimates the deal and winding up the balance of the Bache business will result in one-time costs of about $66 million after-tax, of which $23 million are non-cash and the majority of the balance is compensation, severance and technology-related. Jefferies expects that exiting this business will be accretive to its future earnings.