Deals
FXCM Stock Plunges as Bailout Allows Leucadia to Force Sale
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FXCM Inc., the currency-trading firm that almost collapsed last week when the Swiss franc surged, saw its shares plunge after disclosing the terms of its bailout by Leucadia National Corp.
FXCM, which closed Thursday at $12.63, tumbled to $1.60 today in New York. Leucadia, the owner of investment bank Jefferies Group LLC, can force a sale of the currency broker and keep most of the proceeds for itself under terms of a $300 million loan, FXCM said late yesterday in a statement. Analysts at Citigroup Inc. said today in a report that the deal “essentially wiped out” the value of FXCM’s stock.