BGC Partners Tells GFI Shareholders Not to Window Shop and Accept Its Offer

BGC Partners' bid for GFI takes another interesting step forward as the financial institution urges shareholders to avoid searching around

(null)BGC Partners’ bid for GFI takes another interesting step forward as the financial institution urges shareholders to avoid searching around for deals and accept its offer that is the ‘Best and Only Available’ one.

The ongoing battle between BGC Partners and the CME Group for the acquisition of GFI has seen another aggressive move by BGC Partners.

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Analysis: What drives BGC and CME to bid for GFI

In its latest attempt to influence the outcome of the aggressive M&A, the firm continues to encourage shareholders of GFI to take the decision-making process in their own hands and not of the conflicted management, also reinforcing the notion that its current tender for $6.10 is the best offer on the table.

BGC Partners’ CEO issued a statement outlining his stance on the matter. He believes that shareholders of GFI, who rejected the CME’s bid last week, should take matters in their own hands and move ahead with his firm’s tender.

Howard Lutnick, Chairman and Chief Executive Officer of BGC, commented in a statement: “BGC’s $6.10 per share all-cash tender offer is both the highest price offered for GFI and the only proposal that remains actionable by GFI’s shareholders.

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GFI and its management team have been exploring ‘strategic’ alternatives for their company for a year and a half, and decided based on this exploration that the now defunct $4.55 per share was the price that GFI shareholders should have accepted. The statements by GFI’s management team in their July, 30 2014 press say it all:

“…Optimizing GFI’s value for stockholders has been a goal of management since becoming a public company in 2005 and this [$4.55 per share] transaction represents a singular and unique opportunity to return value [to GFI shareholders.]”

BGC’s announcement comes one day before its current tender expires.

BGC has constantly been outbidding CME since the process started, the firm’s CEO adding that BGC is in a position to move quickly to complete formalities. He added: “We are prepared to act quickly to complete our all-cash offer of $6.10 per share which delivers significant value to shareholders and provides certainty and speed to closing.

We have financing in place and have already received the requisite regulatory approvals necessary to close. We urge GFI shareholders to tender their shares by tomorrow’s deadline in order to realize the value to which they are entitled.”

BGC Partners states that it has the funds and infrastructure in place to make the deal work. The CEO spoke about the reasons why he is keen on purchasing GFI, stating that there were opportunities for BGC to cut costs at GFI. In addition, GFI and BGC are a good fit, which makes the acquisition a good collaboration for BGC.

The BGC-GFI deal is questioned by industry professionals as the overall IDB market is on a slowdown with low-volumes in the fixed income markets.

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