Gleacher & Co. said its board approved a proposal to
dissolve, liquidate and distribute all its assets to shareholders,
after it reported its fourth-quarter loss narrowed on higher
revenue.
Gleacher, an independent investment bank that provides financial
advisory services, has been slammed with losses and staff
defections over the past few quarters, and now has no meaningful
revenue-producing operations. The higher fourth-quarter revenue was
from investment gains.
In June, the boutique firm exited its investment-banking
division after shedding its biggest business, fixed-income trading.
Two years ago, it exited equities trading.
The company hired Blackstone Group L.P. and Capstone Advisory
Group LLC last year to help it evaluate potential mergers,
acquisition or other business combinations.
"After evaluating the company's strategic options, the board of
directors has reached the conclusion that it is in the best
interests of the stockholders to dissolve and liquidate the
Company," said board chairman Mark Patterson.
The company said it would make an initial liquidating
distribution to stockholders of about $20 million, or $3.23 a
share, if and after shareholders approve its proposal.
Meanwhile, the company reported its fourth-quarter results
Thursday. For the quarter, the company reported a loss of $2.9
million, or 47 cents a share, compared with a year-earlier loss of
$11.3 million, or $1.89 a share.
Its revenue rose 46% to $1.8 million.
Write to Everdeen Mason at everdeen.mason@wsj.com
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