Earlier this month, UK Broker London Capital Group saw its share price jump as it disclosed that it had been received takeover interest from GAIN Capital, Cantor Fitzgerald Europe, and City Index. Since then, shares continue to hold much of their gains but two suitors have announced that they weren’t buying the company. Following GAIN Capital’s confirmation last week that it was no longer interested in an acquisition, Reuters is reporting that Cantor Fiztgerald Europe is dropping out as well.
City Index now becomes the last man standing. In terms of City Index, as owners of FX Solutions, last week they raised cash through the sale of FX Solutions US business to GAIN Capital. The company also has experience managing multiple brokerage brands which any LCG buyer would need as the broker operates brokerage units under the CapitalSpreads, LCGFX, LCGMT, Prospreads, and CapitalCFDs names.
The FX Global Code – Is Self-Regulation the Future of the Industry?Go to article >>
With today’s news, shares of LCG are down 3.8% to 44.50p but remain well above their 2013 low of 32.00. As such, with London Capital’s stock remaining firm overall, traders appear to believe that a deal will get done, despite LCG’s recent poor financial performance.