Gleacher & Co Inc said it was in discussion on a possible merger after it had suspended the search for a strategic partner. The flip flopping is adding to the cloud of uncertainty that already has hurt the firm's standing with clients and employees.

In an announcement, Gleacher announced last February that it had stopped its search for a buyer and for fresh investments. It had also declined an offer from Stifel Financial Corp. 

The sudden change stems from the jump in share values by as much as 30% in the NASDAQ but settled at closing to a 7% increase to a price of US$0.73 per share. Overall, the stock value has declined by 13% since the start of 2013. The investment bank has faced more buffeting winds in the past two years compared to its operations in the last twenty years.

Gleacher has undergone major changes, such as the change of its executive team, closure of its equities business, sale of its mortgage production unit and the firing of over a hundred traders and bankers in just the past year. It has also reported a whole list of losses resulting in overall loss of confidence in its capacity and capabilities.