Builders Standard Pacific, Ryland Jump After Merger Deal

Shares of Standard Pacific Corp. and Ryland Group Inc. jumped after the Southern California homebuilders said they would combine, a deal giving them greater scale and opportunities to capitalize on the housing recovery.

Standard Pacific stockholders will own about 59 percent of the combined company after a share swap, the builders said Sunday in a statement. Standard Pacific will implement a one-for-five reverse stock split, then give Ryland investors 1.0191 shares for every one they hold. Fractional shares will be paid in cash.