Leucadia Will Sell Back 75% of Stake in NII

PITTSBURGH —  National Intergroup said Wednesday that its largest shareholder, Leucadia National Corp., has agreed to sell back three-quarters of its 1.8-million-share holding and to mount no further proxy battles for 10 years.

Leucadia will sell nearly 1.37 million common shares at $24 per share.

National Intergroup’s stock closed Wednesday on the New York Stock Exchange at $27.50 per share, down $1.

In exchange, National Intergroup agreed to give Leucadia warrants allowing it to buy back the stock over the next three years at $30.75 per share. The warrants would allow Leucadia to profit if the stock price rises above $30.75.

The announcement apparently resolves Leucadia’s efforts to score quick profits by influencing the direction of National Intergroup.

Leucadia bought a 7.2% stake in National Intergroup last year after NII announced plans to merge with Bergen Brunswig Corp., a Los Angeles-based pharmaceuticals distributor. Leucadia failed in a proxy battle to scuttle the merger. The merger, however, was later aborted by agreement of Bergen and NII.

Leucadia next raised its stake to 1.82 million shares, or 9% of National Intergroup’s 20 million common shares, but failed in its bid for four board seats that it wanted to press a plan to sell the company’s assets and distribute the proceeds to shareholders.