BGC Partners has formally launched hostile $675m bid for rival US interdealer broker GFI Group after an effort to strike a friendly deal hung up on a dispute over a confidentiality agreement.
BGC said it had commenced an all-cash tender offer of $5.25 per share for the 86.5% of GFI that it does not already own.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
If successful, the bid would break up a deal the GFI board had agreed in July with CME Group to buy GFI at $4.55 a share.
Howard Lutnick, chairman and CEO of BGC, commented, "Despite our best efforts to engage with GFI regarding a negotiated transaction, we have been met with only unreasonable demands and delay tactics in connection with our attempts to execute even a confidentiality agreement covering information on the Trayport and FENICS businesses with GFI and its management. It is time to allow GFI shareholders to choose for themselves."
GFI said a special committee would review the offer and make its position known by Nov. 4. Until then it advised its stockholders to take no action with respect to the tender offer.
CME Group was not available for comment.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
