Capital World Discards Jefferies Holdings After Leucadia Deal

Capital World Investors, the third- largest shareholder in Jefferies Group Inc. (JEF), sold its 4.9 percent stake after the New York-based investment bank agreed to be bought by Leucadia National Corp.

Capital World said it owned no shares in Jefferies as of Nov. 30, according to a regulatory filing today. The Los Angeles-based investment manager held 9.89 million shares as of Sept. 30, according to data compiled by Bloomberg.

Jefferies, run by Chief Executive Officer Richard Handler, agreed last month to be acquired in a stock swap with Leucadia, its biggest holder. Ken Masson, a spokesman for Capital World in New York, and Richard Khaleel at Jefferies declined to comment.

Capital World almost doubled its stake last year after Jefferies fell 48 percent in 2011. The stock dropped as Wall Street banks struggled to maintain trading revenue and as MF Global Holdings Ltd. (MFGLQ)’s bankruptcy fueled speculation that Jefferies might also be toppled by Europe’s debt crisis.

Jefferies fell 0.3 percent to $17.85 at 11:49 a.m. in New York. The shares have gained 30 percent this year.

To contact the reporter on this story: Laura Marcinek in New York at lmarcinek3@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net

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