Leucadia National

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Leucadia National Corp.[1]
Type Public
Traded as NYSELUK
S&P 500 Component
Industry Conglomerate
Founders Ian M. Cumming
Joseph S. Steinberg
Headquarters 520 Madison Ave
New York, New York
, U.S.
Area served Worldwide
Key people Richard B. Handler (CEO)
Brian P. Friedman (President)
Joseph S. Steinberg (Chairman)
Revenue Increase US$ 10.429 billion (2013)
Operating income Increase US$ 1,179.8 million (2013)
Net income Increase US$ 369.2 million (2013)
Total assets Increase US$ 47.8 billion (2013)
Total equity Increase US$ 11.5 billion (2013)
Employees 14,647 (Leucadia and consolidated subsidiaries)
Website leucadia.com

Leucadia National Corporation (NYSELUK) is an American holding company that, through its subsidiaries, engages in mining & drilling services, telecommunications, healthcare services, manufacturing, banking and lending, real estate, and winery businesses with a market cap of about $8.0 billion as of June 15, 2011. Largest current investments include Jefferies and Fortescue Metals Group. The company is sometimes called a "baby Berkshire Hathaway" for the wide range of its holdings.[2]

Leucadia's highest profile move as of 2005 was a bid in 2004 to acquire 50 percent of telecommunications company MCI's common stock. However, after MCI received higher bids from other companies, Leucadia withdrew from the bidding process. [1]

Leucadia executives Ian Cumming and Joseph Steinberg both graduated in the same Harvard Business School Class of 1970. They joined Leucadia around 1979. Ian Cumming (a Vancouver native) and Joseph Steinberg each own about 13% of Leucadia's shares. [2]

Leucadia is headquartered in New York City, but has additional offices in Salt Lake City, Utah. The company's name comes from the seaside town in Southern California and was chosen randomly after several other choices were rejected during the incorporation process. Cumming and Steinberg spotted the sign along the freeway and suggested it as an alternative.

Subsidiaries[edit]

  • Jefferies
  • Berkadia Commercial Mortgage (50/50 joint venture with Berkshire Hathaway)
  • National Beef Packing (78.9% ownership)
  • Garcadia Holdings (Joint venture with Ken Garff Automotive Group)
  • Leucadia Energy
  • Linkem
  • Conwed Plastics
  • Idaho Timber
  • HomeFed (65% ownership)
  • Snowbird Ski Resort (majority ownership by Ian Cumming/The Cummings Family)

Merger with the Jefferies Group[edit]

On November 12, 2012, Jefferies Group announced its merger with Leucadia, its largest shareholder. Jefferies was valued at $3.8 billion at the time of the acquisition. Jefferies remains independent and is the largest operating company within Leucadia. On March 1, 2013, Leucadia bought the Jefferies Group for $3.6 billion. The company’s founders, Ian M. Cumming and Joseph S. Steinberg, stepped down from their management roles after the merger, with Mr. Steinberg staying on as chairman. The number of directors also increased to 11 from eight, including the addition of nine new directors. Richard B. Handler became chief executive of Leucadia, while remaining chief executive of Jefferies.

Other Investments[edit]

  • WMAC Investment Corp., a subsidiary of Leucadia, is the largest backer of Pershing Square Capital Management L.P., a Delaware-incorporated investment partnership. William Ackman is the founder of the $10 billion+ activist hedge fund Pershing Square. The Fund had 20%+ returns over the past 9 years.
  • In December 2011, National Beef Packing Company, LLC and its major owner U.S. Premium Beef, LLC (USPB) announced the company’s majority owners have entered into a Membership Interest Purchase Agreement with Leucadia National Corporation under which Leucadia will acquire approximately 79 percent of the outstanding ownership interests in National Beef.
  • Leucadia (through a subsidiary) is an investor in controversial syngas plants which utilize coal gasification technology through a Department of Energy loan guarantee. A $2.6 billion plant was planned in Indiana, while similar proposals in Illinois have met resistance from state regulators.[3][4] The project in Indiana was ultimately panned by the state legislature in 2013.[5]

External links[edit]

Regulatory Filings[edit]

References[edit]

* Leucadia National Corporation Annual Report 2007

  1. ^ Leucadia National Corporation 10-k for the 12 months ended 12/31/13, filed 2/28/14 http://leucadia.com/10k_posting_docs/LNC_2013_Form_10-K.pdf
  2. ^ Alden, William (April 2, 2014). "Handler, Leucadia’s Chief, Takes Pay Cut in New Role". The New York Times. 
  3. ^ "Wiki article on Mitch Daniels energy policies". 
  4. ^ Murtaugh, Dan (January 12, 2012). "Illinois ruling hurts Leucadia synthetic gas proposal". Press-Register. Retrieved 2012-02-15. 
  5. ^ Bradner, Eric (2013-04-27). "BRADNER: Rockport plant will never be". Retrieved 2013-04-29.