BGC Partners Inc.'s hostile takeover bid for derivatives and currency brokerage firm GFI Group Inc. began Wednesday with the launch of its tender offer.
BGC made a $675 million bid for GFI last month, but decided to take the $5.25 per share offer directly to shareholders after the firm refused to discuss a deal. The financial and real estate brokerage firm began its tender offer on Wednesday for the shares it does not already own. BGC already has a 13.5 percent stake in GFI.
Continue Reading Below
A representative for GFI declined to comment on the matter Wednesday.
GFI agreed in July to be acquired by CME Group in a $4.55 per-share deal. As part of that agreement, the combined company would sell GFI's wholesale brokerage and clearing business for $165 million in cash.
BGC argues their offer is superior at a 15 percent premium and argues the CME deal would "deprive GFI shareholders" of the value of their investment because it would sell the business to GFI management at a discount.
Shares of New York-based BGC Partners rose 1 percent to $7.57 by early afternoon, amid a modest market dip. Shares in GFI, which is also based in New York, rose 2 percent to $5.24.