IFX shares go into reverse as putative takeover proves abortive
February 4, 2005admin No Comments »Shares in IFX fell more than 5 per cent to 118½p yesterday as the spread-betting company revealed that talks about a possible bid had failed.
The company, which offers online spread-betting and foreign exchange trading, announced on Tuesday that it was in talks with a undisclosed bidder. The Takeover Panel had asked the group to clarify the position after its shares had risen 15 per cent in two days.
IFX said the offer, believed to have been pitched at 120p early in the new year, would value IFX at a small discount to the shares.
Talks foundered after the bidders failed to raise their offer.
A number of suitors are known to have informally looked at IFX. Shares in IFX, which is the only listed spread-betting company, have recovered from the low in October of 76½p as profits recovered on the back of improving markets.
Its shares rose in December when Vincent Tchenguiz, the brother of Robert and co-owner of Rotch, the property group, made it known that he was interested in buying up to 20 per cent of the group. He has bought contracts for difference (derivatives) representing 3.3 per cent of IFX.
The shares bounced again this week on reports that rival spread-betting firm IG Index, which was taken private less than two years ago by CVC Capital was shortly to appoint advisers to look at its strategic options.
CVC indicated it was considering bringing IG back to market. CVC, which bought IG Index less than two years ago for about £140m, was said to be considering floating the company at close to £250m.
It is understood that neither IG Index, Mr Tchenguiz or Shore Capital, the UK independent stockbroker that was also rumoured to have expressed an interest in the group, were in bid talks with IFX.
Tradition, the UK arm of Swiss money broker Compagnie Financière Tradition, last year took a 10 per cent stake in IFX. However, the company has denied it was thinking of taking over IFX.
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