UBS to Buy Piper Jaffray Unit for $500 Million
From the Associated Press
Swiss banking company UBS said Tuesday that it had agreed to buy the U.S. private client branch network of Piper Jaffray Cos. for $500 million in cash, expanding its wealth management business in the Midwest and western United States.
UBS said it would integrate Piper’s network into its UBS Wealth Management division.
Piper shares soared $5.90, or 11%, to $61.10. UBS shares slipped $1.67 to $110.50.
The network of Minneapolis-based Piper includes more than 800 financial advisors in about 90 offices. It offers retirement planning, estate planning and brokerage services.
Piper said that shedding the brokerage business would allow it to concentrate on becoming a bigger investment banking firm.
