BFC Financial Corporation today (August 15) announced that it terminated the merger agreement struck with Levitt Corporation in January, 2007.
In a separate announcement of the termination of the agreement, Levitt said it would proceed with a previously-announced rights offering. BFC said that it intends to participate in that offering.
Levitt previously filed a registration statement with the Securities and Exchange Commission in connection with its proposed rights offering to its shareholders of up to $200 million of additional shares of its Class A Common Stock. The offering, though filed, has not yet become effective.
Under the deal struck in January, BFC was to exchange its stock for Levitt's, offering Levitt investors a premium of $14.41 per share. BFC, a holding company that specializes in buyouts of mid-sized companies, was already a large Levitt shareholder.
Late last week, Levitt reported a $58.1 million loss for the second quarter, including $63 million in impairment charges.