As a footnote to the announcement this morning that Leucadia National will buy Jefferies (page 4), a mid-sized investment, bank, Leucadia’s wine subsidiary Crimson Wine Group will be spun off – its shares will be distributed by Leucadia to Leucadia shareholders. That will make Crimson an independent, publicly traded company.
Crimson’s portfolio includes some well known West Coast producers: Pine Ridge, Archery Summit, Chamisal Vineyards and Seghesio Family Vineyards.
Leucadia, which already owned more than 28% of Jefferies, is paying for the rest in stock rather than cash. I would guess that Jefferies figured its shareholders would not want to own a piece of company in the wine business.