A big investor in SWS Group has objected to the Dallas company's planned sale to Hilltop Holdings.

Lone Star Value Management, which owns about 800,000 shares of SWS stock, wrote in an open letter to the company's board that it believes the sale price is too low, while claiming that SWS failed to run a proper auction. The $9-billion-asset Hilltop agreed last week to pay $7.88 a share in cash and stock to buy all remaining shares in SWS, parent of the $1.3-billion-asset thrift Southwest Securities. Hilltop, also based in Dallas, owns roughly 24% of SWS.

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