Gleacher announces exit of MBS & Rates and Credit Products businesses

By Tali David

Minneapolis, April 10 - Gleacher & Co., Inc. announced that it will exit its Mortgage Backed Securities & Rates and Credit Products businesses effective immediately, according to a press release.

The plan could affect up to about 160 employees. It does not include the company's other business operations, principally investment banking.

The company also announced that it is engaged in preliminary discussions with a third party regarding a potential business combination.

Finally, after having reopened the period during which Gleacher stockholders could submit proposals for nominations to the board of directors, the company said it received a submission from Clinton Relational Opportunity Master Fund, LP, a stockholder of the company, of a number of individuals, including Thomas Hughes, the company's chief executive officer and a current director, that it intends to nominate for election to the board of directors at the annual meeting of stockholders scheduled for May 23.

If elected, these nominees would together constitute the entire board of directors.

Gleacher is a New York-based investment bank.

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