Instinet to buy ProTrader

Discussion in 'Trading' started by Dustin, May 12, 2001.

  1. Dustin

    Dustin

    This may open up the INCA book!

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    Instinet in Deal to Acquire Protrader

    5/11/2001 6:06:00 PM
    WASHINGTON (Reuters) - Instinet Group Inc., one of the world's largest electronic securities trading firms, said on Friday it entered into a deal to acquire ProTrader Group LLC, a provider of trading technologies and electronic brokerage services, for $150 million.

    ``We believe that this acquisition, if completed, would enhance our customer interface and order-routing technology and advance our strategy of developing our services for individual investors,'' Instinet said in a filing with the Securities and Exchange Commission.

    It entered into the non-binding deal on Thursday, and said it was subject to a definitive agreement, regulatory approvals and other conditions. ProTrader mainly caters to active non-institutional traders, according to the filing.

    Instinet said it may pay $100 million of the $150 million purchase cost using newly issued shares of its common stock.

    The New York City-based company, a unit of the British news and information provider Reuters Group Plc (RTR) (RTRSY) , is in the process of going public, offering 29.5 million common shares for a price estimated to range from $11.50 to $13.50 apiece.

    When the IPO is completed, Reuters will continue to own about 87.5 percent of the company.

    Reuters shares gained 65 cents closing at $86.74 in Friday trading on Nasdaq.

    Reut18:06 05-11-01

    http://cbs.marketwatch.com/news/new...?guid={4A252F85-B8F1-41CE-A708-BAEDB274AD61}&