Navigate this market better. Subscribe for FREE stock alerts and information.

Wednesday, October 22, 2014

BGC launches formal $675 million offer for rival broker GFI, (NASDAQ: BGCP), (NYSE: GFIG)

Interdealer broker BGC Partners Inc went ahead with the formal launch of its hostile $675 million bid for rival GFI Group Inc on Wednesday after talks between the two companies reached a deadlock.Interdealer brokers match wholesale buyers and sellers of currencies, bonds and other instruments but analysts have long expected the industry to consolidate since new regulations forced their traditional investment banking clients to reduce risky trading activities.The industry has also faced challenges as regulators have pushed more derivatives trading onto electronic platforms in a bid to make the market more open and safer. Low interest rates also have dampened market volatility, adding to brokers' woes.BGC said on Wednesday it had commenced an all-cash tender offer of $5.25 per share for the 86.5 percent of GFI that it does not already own.

BGC Partners, Inc. (BGC) is a global brokerage company primarily servicing the wholesale financial markets, specializing in the brokering of a range of products, including fixed income securities, interest rate swaps, foreign exchange, equities, equity derivatives, credit derivatives, commercial real estate, property derivatives, commodities, futures and structured products. Shares of BGCP traded higher by 1.34% or $0.1/share to $7.59. In the past year, the shares have traded as low as $5.20 and as high as $8.01. On average, 970262 shares of BGCP exchange hands on a given day and today's volume is recorded at 904612.

GFI Group Inc. (GFI) is a provider of wholesale brokerage services, clearing services and electronic execution and trading support products for global financial markets. Shares of GFIG traded higher by 0.97% or $0.05/share to $5.18. In the past year, the shares have traded as low as $2.98 and as high as $6.18. On average, 1153820 shares of GFIG exchange hands on a given day and today's volume is recorded at 275726.



Source