Stifel Chairman and Chief Executive Ronald Kruszewski on Wednesday sent a memo to the company’s employees, including 2,300 advisors, seeking to counter rising speculation that he could sell the 135-year-old firm.
“Let me be clear. Stifel is not being sold to Raymond James or to anyone else,” Kruszewski wrote in the memo, which referred to a report in industry publication WealthManagement.com.
The article had linked Stifel to a potential deal with regional rival Raymond James Financial. The publication cited anonymous sources who said that legal pressure and rising costs tied to barred Miami broker Chuck Roberts could put pressure on Stifel to sell and that Raymond James was discussed as a “likely buyer.”
Kruszewski called the report “ridiculous and misleading” and compared it to a “White House leak.”
“I’m just surprised Stifel isn’t being linked to Russian collusion,” Kruszewski wrote in the memo, titled “Setting the Record Straight (With a Smile).”
A Stifel spokesperson confirmed the memo but declined further comment.
Raymond James did not return requests for comment. Wednesday’s article noted that, “[I]t is unclear how formal the talks are between the firms or if an agreement is imminent.”
Raymond James trades at a market capitalization of around $31 billion compared to Stifel’s $12 billion. The St. Petersburg, Florida-based firm has around 8,900 brokers.
“I know the folks at Raymond James,” wrote Kruszewski, who has led Stifel since 1997. “They’re a nice company, but let’s be honest, I believe Stifel is number one.”
The question of a sale surfaced last week on Stifel’s third quarter earnings call during which BMO Capital Markets analyst Brennan Hawken asked about whether the company was for sale and noted that, “Many investors believe that [it] can make for a good target.”
Kruszewski, 67, responded that there was “no need” to sell the company and that questions seem to be driven by concerns about whether he could run out of energy and want to sell.
“That ain’t the case here,” Kruszewski said on the call. “I’m not looking to do anything.”
A source close to the company said that Kruszewski was concerned following the earnings call that plans to sell its non-core independent brokerage business had been conflated with an intention to sell the company.
Stifel on Monday announced it had agreed to sell its $9 billion-asset independent contractor unit to Equitable Advisors, confirming a report earlier this month.
Common Wealth said the same thing and they sold like 4 months later. I definatley think they are selling now.