6th Nov 2015 10:23
LONDON (Alliance News) - ICAP PLC is set to take a majority stake in rival interdealer broker Tullett Prebon PLC, the London Evening Standard reported on Friday.
Citing sources, the report said that the two companies have been in talks for some time. A deal could be announced as soon as next week, the report said. The report said that ICAP's much larger electronic broking business will remain separate, leaving its more traditional broking business to be merged with Tullett and ICAP to take a majority stake.
ICAP Chief Executive Michael Spencer "will become chairman of the combined broking arm while [Tullett Chief Executive] John Phizackerley will run it, leaving Spencer in charge of Icap as a pure-play electronic broking business," the newspaper said.
ICAP declined to comment, while Tullett Prebon was not immediately available for comment.
Shares in Tullett, which had fallen as low as 288.50 pence following a weak trading update on Friday, rebounded to 340.70p following the report, up 5.7% on the day.
ICAP shares were up 0.2% at 444.60p.
http://www.standard.co.uk/business/business-news/icap-swoops-on-tullett-prebon-in-huge-broking-merger-a3108311.html
By Samuel Agini; [email protected]; @samuelagini
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