Bloomberg reports that MF Global Holdings Inc. is seeking a buyer for its futures brokerage unit and is looking to strike a deal within days, said two people with knowledge of the matter.
MF Global has been contacting large banks already in the futures business, said the people, who spoke on condition of anonymity because the talks are private. Under the plan being discussed, the New York-based firm’s holding company and other businesses wouldn’t be included in the sale, the people said.
Its futures unit could sell for around $765 million, equivalent to $4.60 per diluted share, Niamh Alexander, an analyst with KBW Inc. in New York, wrote in a note to clients today. She estimated the futures unit accounted for $1.02 billion of group tangible book value, which includes the firm’s broker-dealer unit, and could sell for 75 percent of that.
“We think that any of the big dealers could relatively easily tuck this business into their own portfolios,” Alexander wrote.
Find out more at http://www.businessweek.com/news/2011-10-27/mf-said-to-seek-buyer-within-days-for-futures-business.html
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