Man Group Plc, the London-Listed hedge fund manager said on Thursday that it will sell Refco Inc.'s main futures business operations to Marathon Asset Management LLC.
President Bruce Richards of New York-based Marathon, which has £6.3 billion worth of assets, said: “We are committed to implementing an immediate recapitalization plan aimed at rebuilding our customer base, retaining our talented employees and restoring the trust and respect of all our key partners.”
Man has reportedly taken this decision because its existing operations in London overlap with the business it acquired after buying Refco's futures brokerage in November.
Ian Jarvis, head of corporate finance at Man said: “Man bought the whole of Refco's futures business ... London was never a good fit for us but we agreed with creditors to buy the whole thing. What we have done is assigned (operations) in London to Marathon.”
Man's spokesman Paul Downes said that the group had to complete its acquisition of Refco Inc.'s assets this week in order to avoid incurring a penalty of £2.9 million.
Man Group, the world's largest listed hedge fund firm, did not reveal the amount it had got for selling Refco’s Assets.
Man Group bid and won an auction on November 10 for acquiring the futures business of Refco Inc., which was the fourth-biggest U.S. futures broker. This followed Refco's former Chief Executive Phillip Bennett’s indictment, whose involvement in an accounting scandal left the company bankrupt.
Man has agreed to pay £163.3 million in cash, which will go towards Refco's regulated futures brokerage’s 2,000 accounts and 300 staff in the Britain, United States, Canada and Asia.
Mark Slade, currently managing director of Refco's European business, will become chief executive officer of the new company, which is going to be renamed, according to a statement issued by Marathon.
Posted
on : Thu, 24 Nov 2005 16:20 GMT | Business News
By : Anne Philips
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