Instinet receives new bid for brokerage unit

Instinet receives new bid for brokerage unit

Instinet's proposed merger with Nasdaq could be delayed after New York private investment firm Third Avenue Management made a higher separate bid for its institutional brokerage unit.

Third Avenue Management, which is an Instinet shareholder, is offering $307m for business. The offer, made in a letter to Nasdaq and Instinet, expires today.

Nasdaq agreed to buy Instinet - which is majority owned by Reuters - for $1.9bn in April. Under the proposed merger agreement, Nasdaq said it was going to sell the brokerage unit off to private equity group Silver Lake Partners for $207.5m, while retaining the Inet ECN.

Although the counterdeal won't derail the merger, the takeover could be delayed if Instinet shareholders accept Third Avenue's offer.

In a statement, Instinet says its board is reviewing the offer letter.

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