By Maria Armental
Brokerage firm BGC Partners Inc. again extended its $651 million
unsolicited bid for fellow brokerage firm GFI Group Inc. amid a
weak response from investors.
The offer, which would have expired at 5 p.m. EST Tuesday, has
been pushed to Jan. 6, unless it is extended further, the company
noted.
GFI's board last month unanimously rejected BGC's $5.25-a-share
offer, instead supporting a bid from Chicago exchange operator CME
Group.
As of the close of business Monday, BGC said about 12.4 million
shares, or about 10% of those outstanding, had been tendered to the
offer.
That's down sharply from the 23.2 million shares that had been
tendered at Nov. 19. Funds sometimes opt not to tie up their
holdings when they expect tender deadlines to be repeatedly
extended.
GFI, a leader broker of credit-default swaps, was founded in
1987 by Michael Gooch, now executive chairman.
BGC, run by Cantor Fitzgerald Chief Executive Howard Lutnick, is
the second-largest broker by market capitalization. It holds 13.5%
stake in CFI.
Interdealer brokers such as BGC and GFI largely operate as
middlemen for banks trading derivatives, bonds and other
securities.
Write to Maria Armental at maria.armental@wsj.com
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