You say the Abadi bid cannot be considered for several reasons - buy only give one reason - presence of a foreign government - Dubai/UAE. What are the other reasons? And what's wrong with a foreign govt purchasing a US private financial enterprise. I think Flowers won't get it for two reasons; 1. I can see the bankruptcy judge being inclined to approve a bid for the entire REFCO Inc vehicle and I am not sure Flowers i sprepared to bd for the entire group. 2. I see a bidding war - now we have Dubai, IB & Calyon Financial and expect more serious bids/consortia to emerge. I doubt if Flowers will be aggresive in his bidding to win. He may ultimately take comfort in receiving hs $21.8M+ break-up fee plus his expenses (the MOU provides for a riembursment of expenses up to a $5m cap). Not bad for a month or so of work! Well, as I said the situation is still very fluid but needs to be resolved ASAP or as the REFCO lawyer said, REFCO will melt to death! personally, I am rooting for Calyon, it owuld be a very good megr e with an exisitng expereinced FCM management and teh strng backing of teh Credit Agricole group. Godlfield and Winkleman of GS have great pedigree but what do they really know about the futures business? What really surpised me i sthat GS via their GSEC unit (former SLK) didn't buy it. Or maybe they will in the auction (now that Greenhill is the adviser) and pay Flowers his 22M breakup fee!!
speaking of bidding does anyone know why the options for RFXCQ can only be used for exiting or closing your existing positions? was looking at buying calls to further hedge the position and wait since I am already hung. w
I'll spell it out. Do you really want to hand Osama a knife to be pointed at the heart of the US economy?
That is such a myopic and hateful comment. Something to ponder, the "Osamas" ofthe world as you term it already own tens of billions of dolars of US treasuries and you are bothered about them owning a measly FCM/prime broker. Very wise!
sorry, just curious, who is abadi really? can't say his name has crossed any ocean yet honestly... whats his track record? how credible the bid, the experience of the dubai dudes etc in running the type of business they r bidding for? i'm sure they must be really flush with the oil prices we've seen this year but... just musing here but, say the sultan of brunei walks over with $2bio and wants to buy refco llc for his daughter, what wld u think?
Abadi supposedly runs a hedge-fund/buyout fund. Additionally, the Blackstone Group is part of or advising the Dubai Investmnet agency on their bid.
everything dude, sthg only a frenchman wldn't understand i guess... not saying that for u of course....
blackstone, i know, thats the right caliber. abadi, all i know is he is a refco creditor, stuck for $20+mio, not exactly a totally disinterested party... not that my opinion matters in any way with regard to closing the deal etc, but just trying to understand the merit of some of those bids, other than delaying the process and destroying the remaining value... to the great benefit of IB and other refco competitors for instance...
I agree. There was a similar case a while ago, the chinese wanted to buy some US oil company. My opinion was: let them buy at the top so we can buy it from them at the bottom. I wouldnt have any objections to arab money entering the US, on the contrary that would be great since their elite will have interests on US ground and that's good from a security point of view. I think blocking their people and their money only increases resentment and hostility. You guys have to visit South Spain the Marbella area and London, Kensington/Knightsbridge area, arab money is one of the reasons of those areas economic prosperity. Unless you're a local in that case you won't like high real estate prices.
PLEASE SOMEONE SAVE REFCO FROM IB!!! PLEASE!! CALYON FINANCIAL, DUBAI GROUP - WHERE ARE YE?!! Interactive Brokers Group Bids to Buy Refco's Futures Business Oct. 20 (Bloomberg) -- Interactive Brokers Group LLC, the biggest independent U.S. broker-dealer, said it made a bid for the regulated futures units of Refco Inc. that exceeds the bid of J.C. Flowers & Co. Interactive Brokers, based in Greenwich, Connecticut, will pay 106 percent of Refco's net regulatory capital, more than the 103 percent offered by J.C. Flowers, Interactive said in a letter to Refco's lawyers at Skadden Arps Slate Meagher & Flom, according to an e-mailed statement today. The offer does not include a breakup fee. Refco filed for bankruptcy Oct. 17. ``By this letter we hereby submit a bid at a higher level,'' Interactive Brokers said in the letter. The case is In re Refco Inc., No. 05-60006, U.S. Bankruptcy Court, Southern District of New York. To contact the reporter on this story: Andrew Dunn in New York at adunn8@bloomberg.net; or Tom Becker in U.S. Bankruptcy Court in New York tbecker5@bloomberg.net. Last Updated: October 20, 2005 17:34 EDT Print