Tullett Prebon and GFI in merger talks

Tullett Prebon and GFI in merger talks

Interdealer brokers Tullett Prebon and GFI Group have confirmed they are in discussions about a possible merger.

In a statement responding to press speculation, London-based Tullett Prebon confirms it is in talks with US rival GFI but cautions that "discussions are at an early stage and there can be no certainty that they will result in a transaction".

GFI has also issued a statement, saying it is "engaged in non-exclusive discussions" with Tullett.

Rumours of renewed talks about a merger of equals surfaced earlier this week. Previous talks between the two broke down last year after they were unable to reach agreement on a deal.

If the merger is completed the combined firm would rival market leader Icap.

Yesterday GFI posted a 24% rise in net income, to $23.6 million and revenues of $261.5 million, up 15%, as it was boosted by market volatility.

Speculation regarding the Tullett Prebon tie-up pushed up shares in GFI, which closed up 11.25% at $10.09 on Nasdaq yesterday. However, the broker's share price has more than halved this year.

This morning Tullett Prebon shares - which have held steady this year - were up two per cent, or 9.75 pence, to 474.75 pence.

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