With Acquisition Goal Nearing, BGC Extends Tender Offer of $6.10 for GFI Group Shares

Following the expiration of their $6.10 tender offer for shares of GFI Group yesterday, BGC Partners has announced that they are extending the tender until February 19th. The announcement comes as GFI Group’s proposed $5.85 deal with the CME Group crumbled when it didn’t meet shareholder approval last week. This paved the way for BGC’s $6.10 tender offer to gain favor from shareholders.

Following the expiration of the tender offer yesterday, BGC announced that they had nearly received the necessary votes to move further in their takeover of GFI. According to BGC Partners, as of the tender’s expiration, approximately 70% of GFI Group shares not owned by executives or directors supported the proposed transaction. Combined with BGC’s existing ownership of 17.1 million shares in GFI along with the 70% of shareholders that tendered, it put the firm at 43.3% of total shares backing the Acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term and near their 45% goal. As such, with only 1.7% of total shares needed to move further on the acquisition, BGC decided to extend its tender offer today.

If successful with reaching their 45% goal, BGC Partners will aim to take control of GFI Group by installing its own directors and to plan for a larger acquisition of the firm. For their part, GFI Group's upper management have consistently been opposed to a deal with BGC. If approved, the CME Group acquisition would have led to the Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term operator purchasing GFI’s trading technology, with GFI’s executives then purchasing the brokerage unit from the CME.

The dual nature of the deal would have allowed the CME to acquire strategic trading assets to expand their existing business in products and regions where they have less market share, return shareholder value who had seen their shares spike from around $3.00 to $5.85, while also providing GFI management with the ability to retain control of their brokerage business. As a result, GFI management have been opposed to a deal with BGC which would ultimately lead to them losing control of the business, but maximizing shareholder value. However, GFI’s executives have been skeptical about BGC’s ability to finalize a complete acquisition of their firm. In addition, they have warned that by not signing NDA agreements with GFI, BGC could ultimately grab employees and sensitive data during the post 45% threshold negotiation period, and then walk away from a total acquisition.