October 22, 2014 / 4:25 AM / 4 years ago

BGC set to launch tender offer for GFI - WSJ

Oct 22 (Reuters) - Interdealer broker BGC Partners Inc plans to launch its $5.25-per-share tender offer for rival GFI Group Inc as early as Wednesday after attempts to strike a deal failed, the Wall Street Journal reported, citing people familiar with the matter.

Talks between the firms hit a roadblock over negotiations relating to a confidentiality agreement that would give BGC access to inside information about parts of GFI's business. In return GFI asked a pledge from BGC not to recruit its key employees, a request the two sides couldn't agree upon, the sources told WSJ. (on.wsj.com/1tc5UO6)

BGC, run by Cantor Fitzgerald Chief Executive Howard Lutnick, launched a $675 million hostile bid for GFI on Sept. 9, topping an agreed offer from exchange operator CME Group Inc .

About a week later GFI’s board of directors announced their support for the agreed-upon offer by CME as it had not determined if the BGC offer was superior to that of CME.

Representatives at BGC and GFI were not immediately available for comment outside regular U.S. business hours. (Reporting by Shivam Srivastava in Bangalore; Editing by Gopakumar Warrier)

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