By Josh Beckerman
Chicago exchange operator CME Group Inc. has increased the value
of its agreement to buy broker-dealer GFI Group Inc., which is
facing a rival bid from brokerage firm BGC Partners Inc.
GFI stockholders would receive $5.25 a share in a mixture of
cash and stock. A deal announced in July called for GFI
shareholders to receive $4.55 a share in CME stock. The maximum
available cash consideration is about 13% of the total
consideration, but could be increased to limit proration.
GFI shares were flat in late trading at $5.03.
Interdealer brokers such as BGC and GFI have long operated as a
hub for banks trading derivatives, bonds and other securities.
CME plans to keep GFI's energy-trading platform, Trayport, and
its pricing-and-data business, known as Fenics, and sell the firm's
brokerage-and-clearing operation back to GFI executives.
BGC said in September that it would offer $5.25 a share in cash
and valued its offer at about $675 million. GFI said Nov. 4 that
its board rejected the BGC bid and called it "highly
conditional."
On Nov. 20, BGC extended a tender offer to Dec. 9 from Nov. 19.
The shares tendered in the offer combined with shares that BGC
already owned totaled about a 31.7% stake. BGC said it was
"actively engaged" with the advisers to GFI's independent board
members.
Write to Josh Beckerman at josh.beckerman@wsj.com
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