UK group wins Refco auction | FT
Man Group, the UK financial services company, on Thursday won the auction for Refco's futures arm with a bid of $323m including debt.
Man fought off a rival offer from Cerberus Capital Management for the business which was put up for sale after Refco disclosed an accounting problem that quickly forced it into bankruptcy.
.....agreed to pay $323m for the regulated futures operations in US, UK, Canada and Asia. This values the futures business at more than $1bn, after the addition of its regulatory capital, which is being retained for liquidation.
The deal will make ManFinancial, the group's broking arm, the third largest futures broker after Goldman Sachs and Citigroup.
The sale was met with relief in the futures industry. "œEveryone was pleased that the market mechanisms worked again," said Dennis Dutterer, former chief executive of Chicago-based Clearing Corp, which guarantees futures transactions at exchanges.
He added that there was a good business and cultural fit between the operations.......
What did I say then?
...
