Cantor's eSpeed, BGC to form new public company-WSJ
NEW YORK, May 29 (Reuters) - Bond-trading firm Cantor Fitzgerald LP is expected announce a corporate restructuring that will form a new, public company out of two businesses it controls, in a deal valued at $1.3 billion, the Wall Street Journal reported on Tuesday on its website.
The Wall Street firm, which lost hundreds of employees in the attacks of Sept. 11, 2001, is expected to say on Wednesday that eSpeed Inc. ESPD.O, an electronic trading house it controls, and BGC Partners Inc. (BGCP.O), a brokerage unit, will form a separate company to be called BGC Partners Inc., according to the Journal.
A spokesman for the company declined to comment, saying it was company policy not to comment on "market speculation."
The new company will be formed after eSpeed issues almost 134 million shares to acquire BGC and would be worth about $2 billion, according to the report.
Cantor will keep voting control over the new company and will provide some services to it under an agreement that will last three years and will then be renewable every six months, the Journal said.
