SMFG Working on Plans for Possible Jefferies Buyout, FT Says (1)

Sumitomo Mitsui Financial Group Inc. is working on plans for a potential takeover of Jefferies Financial Group Inc., according to the Financial Times.

Japan’s second biggest lender, which has been building up its stake in the Wall Street investment bank, has set up a small team that will be ready to act if Jefferies’ falling share price presents an opportunity, the FT reported, citing unnamed sources. A takeover would have to overcome several obstacles, and any move by SMFG isn’t imminent, the report said.

Shares in Jefferies rose 14% in premarket trading. Through Monday’s close, the stock has fallen ...