Jefferies Financial Group took another hit from WeWork – this time a $69 million writedown to its stake in WeWork parent We Co – in the quarter ending November 30, the investment bank said in an earnings statement released on Wednesday.
Previously, Jefferies slashed the estimated value of the stake by $146 million on August 31, more than two weeks before the shared-workspace group shelved its plans to go public.
The bank had originally invested $9 million in the now-embattled office company.
Jefferies Financial Group again cut the value of its small WeWork stake, the investment bank said in an earnings release on Wednesday.
Its merchant banking unit had invested $9 million in the company for a stake that it said was worth $269 million as of May 31.
In September, the bank said it had slashed the estimated value of the stake by $146 million on August 31, more than two weeks before WeWork shelved its plans to go public.
The September adjustment reflected a „significant discount due to uncertainty regarding the timing and pricing of We’s IPO,“ CEO Rich Handler and President Brian Friedman said in the third-quarter earnings release. „As the facts at We become clearer, further adjustments may be made in future periods.“
The company did not comment on the latest writedown or offer any additional information in the statement on Wednesday reporting fourth-quarter earnings.
WeWork’s valuation plummeted from $47 billion a year ago to less than $5 billion in November. In September, intense scrutiny of its finances and leadership from investors and the media forced WeWork to remove cofounder Adam Neumann as CEO and scrap its IPO plans.
In September, Jefferies said it had earned $31 million in cash from the $9 million investment in WeWork, and retained a 0.8% stake in the company.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
