19 October 2017
visit www.response.ncr.com

Cantor to sell BGC Partners to eSpeed

30 May 2007  |  9169 views  |  0 handshake

Cantor Fitzgerald is selling privately held brokerage unit BGC Partners to separately listed subsidiary eSpeed for $1.3 billion. The merged entity will take the BGC name and form a new public company focused on voice and electronic fixed income trading.

To acquire BGC, eSpeed will issue in the merger an aggregate of 133,860,000 shares of its common stock and rights to acquire shares of its common stock. In the transaction, eSpeed's shares are being valued at $9.75 per share, a 6.09% premium to the closing price of eSpeed's Class A common stock on May 29, 2007. But this is significantly less than the $12 cash per share offered for eSpeed by London-based brokerage Tullett Prebon in April, which was turned down by Cantor.

The move could placate activist hedge fund investors in eSpeed, who had been concerned about corporate governance and the relationships between the three entities.

In combining eSpeed and BGC, Cantor says it will be consolidating its large inter-dealer broker businesses in one public entity, thereby facilitating future business combinations. The Joint Services Agreement and Administrative Services Agreement between eSpeed and Cantor will be terminated at the closing of the merger, Cantor and eSpeed will no longer provide collaborative marketplaces, and revenue sharing between them will be terminated.

For transition purposes and convenience, at closing, the combined company will enter into a new back-office operating and administrative services agreement with Cantor that Cantor says is designed to create scale efficiencies and reduce overall costs. Services under the new agreement will be charged to both companies at cost. The agreement has an initial three-year term and thereafter may be cancelled by either party on six months' notice.

The combined company's 2007 projected revenues are expected to be approximately $1 billion. For 2008, the combined company's projected revenues are expected to increase by more than 12% and to exceed $1.1 billion in annual revenues.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Wagner patent expiry to hit eSpeed earnings

Wagner patent expiry to hit eSpeed earnings

03 May 2007  |  4623 views  |  0 comments
Cantor rejects eSpeed bid from Tullett Prebon

Cantor rejects eSpeed bid from Tullett Prebon

18 April 2007  |  8646 views  |  0 comments
Hedge funds circle eSpeed

Hedge funds circle eSpeed

30 March 2007  |  4439 views  |  0 comments
Espeed loses OMX patent appeal

Espeed loses OMX patent appeal

27 March 2007  |  4738 views  |  0 comments
Chapman Capital piles pressure on eSpeed following patent ruling

Chapman Capital piles pressure on eSpeed following patent ruling

22 March 2007  |  4885 views  |  0 comments
Chapman Capital demands eSpeed shake-up

Chapman Capital demands eSpeed shake-up

15 March 2007  |  4281 views  |  0 comments
Espeed names Yevette Tierney CIO

Espeed names Yevette Tierney CIO

21 February 2007  |  7782 views  |  0 comments
Cantor Fitzgerald signs for Xcitek corporate actions technology

Cantor Fitzgerald signs for Xcitek corporate actions technology

22 May 2006  |  6197 views  |  0 comments
Cantor acquires Horizon fixed income platform

Cantor acquires Horizon fixed income platform

28 February 2006  |  5868 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.innotribe.comvisit www.vasco.comvisit www.fivedegrees.nl

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
15518 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
8710 views comments | 16 tweets | 22 linkedin
hands typing furiouslyHow artificial intelligence can deliver a...
8349 views 0 | 8 tweets | 9 linkedin
satelliteGates Foundation backs Ripple collaboratio...
7795 views comments | 13 tweets | 10 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
6962 views comments | 9 tweets | 17 linkedin

Featured job

Competitive base + commission + benefits
Denmark, Finland, Iceland, Norway or Sweden

Find your next job