IFX hints at strained dealings with bidder

IFX, the only London-listed spread betting group, yesterday issued a curt statement confirming it had received a takeover approach from an unnamed potential bidder.

The statement was released after the group’s share price continued Monday’s rally, jumping almost 8% in early trading as rumours of an imminent bid strengthened.

However, the statement warned the approach related to a potential offer that would valued IFX shares “at a small discount” to the current share price. Shares, which gained 9p to 123p in morning trading, were changing hands at 119p when the statement was issued, suggesting the putative offer was likely to value IFX at less than £34m.

The short statement hinted at strained relations with the prospective bidder. “This announcement is not being made with the agreement or approval of the potential offeror,” it said.

Excitement around IFX follows reports that private equity backers at rival spread betting firm IG Index are considering returning the business to market. CVC Capital Partners is discussing returning IG to market just two years after taking it private in a £143m buyout. Some suggest IG could be valued at more than £250m on flotation.

Such a valuation has thrown a spotlight on IFX, where serial entrepreneur Vincent Tchenguiz has recently declared his intention to build a stake of between 10% and 15%. So far, he holds 3.35%. Other interest is said to be coming from Shore Capital. Last week the stock broker confirmed it had hired NM Rothschild, the merchant bank, to advise on acquisition opportunities.

A year ago IFX’s former management team sold the last of its 33% stake in the business, passing a 10% holding to Swiss-listed rival Tradition. At the time chief executive Edmond Warner, who is also a Guardian columnist, said he was “extremely pleased” with the deal.

Stockbroker Teather & Greenwood said yesterday it had backed an offer from Icelandic bank Landsbanki Islands valuing the group at £42.8m. The deal is expected to lead to windfall payouts to directors and will strengthen the group’s market-making and deal financing capabilities. Meanwhile, Durlacher announced it had agreed a merger plan with Panmure Gordon, the stockbroking arm of Lazard, valuing the enlarged business at £80m.

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