Japan’s second-largest lender, Sumitomo Mitsui Financial Group, is working on plans for a possible takeover of Jefferies, as investor concerns continue to weigh on one of Wall Street’s most aggressive investment banks.
SMFG, whose banking subsidiary Sumitomo Mitsui Banking Corporation holds a minority stake in Jefferies, has tasked a small team with making sure it is ready to act if Jefferies’ falling share price presents an opportunity, according to people familiar with the matter.
A takeover would have to overcome significant barriers, including regulatory obstacles and a culture gap. Any move by SMFG is not imminent, the people warned, and it is also uncertain whether Jefferies executives would be willing to sell at a depressed share price.