Broker Newedge faces shake-up to aid sale
PARIS (Reuters) - French broker Newedge, owned by Credit Agricole (CAGR.PA) and Societe Generale (SOGN.PA), may be restructured to help attract a buyer, a banking source close to the situation told Reuters.
Newedge has been up for sale for the past year, struggling to find a buyer amid a lack of appetite for euro zone finance assets. Neither co-owner is willing to take on the business.
"A reorganization of Newedge is being looked at by its co-owners," the banking source said on Friday, adding Newedge's key derivatives business has been hit by poor market conditions.
French newspaper Les Echos reported Newedge might split its asset execution and clearing businesses to increase the chances of a sale. BGC Partners (BGCP.O), BNP Paribas (BNPP.PA) and State Street (STT.N) were among the interested buyers, it said.
A Newedge spokesman would not comment. Credit Agricole and SocGen were not available to comment.
Newedge, formed in 2008 from a combination of Credit Agricole's Calyon Financial and SocGen's Fimat unit, has about a 12 percent market share for execution and clearing on global-listed derivatives exchanges, according to its website.
It employs 3,000 people in 16 countries and had a net banking income of 913 million euros ($1.2 billion) in 2011 when net profit fell two thirds to 33 million euros.
($1 = 0.7761 euro)
(Reporting by Lionel Laurent and Dominique Vidalon; Editing by Mark Potter)
- A former SAC Capital Advisors trader, set to go on trial next month on insider trading charges, wants to cite in court some 2012 testimony given by the hedge fund's founder Steven Cohen, claiming it rebuts the government's case.
SAN FRANCISCO - At Pinterest, the four-year-old online bulletin board service that is valued near $3.8 billion, some 70 percent of the users are female. But the company's board of directors is 100 percent male. | Video
BEIJING/HONG KONG - China reiterated its opposition on Thursday to a European Union plan to limit airline carbon dioxide emissions and called for talks to resolve the issue a day after its major airlines refused to pay any carbon costs under the new law.