Interactive Brokers Group (IBG), a technology leader in global brokerage services, has made a bid to purchase Refco's entities engaged in regulated futures and commodities trading activities.
The bid was submitted on Wednesday in a letter sent to Refco's lawyers at Skadden, Arps, Slate, Meagher & Flom. The text of the letter reads as follows:
"Interactive Brokers Group (IBG) is represented by Dechert LLP in connection with the referenced matter.
We have reviewed the Memorandum of Understanding (Flowers' MOU) between your clients Refco, Inc., and Refco Global Futures, LLC and FGS Refco Acquisition, LLC dated October 17, 2005. By this letter we hereby submit a bid at a higher level.
IBG, through a wholly-owned subsidiary, is prepared to execute a Memorandum of Understanding, on the same terms as the Flower MOU, except with the following improvements:
- We will pay 106% of net regulatory capital, rather than the 103% provided in the Flowers' MOU; and
- We will not require a break-up fee."
IBG is the parent of global market-making firm Timber Hill and global customer brokerage firm Interactive Brokers LLC (IB), which trades equities, options, futures, foreign exchange and bonds on over 50 exchanges and marketplaces around the world.