New group emerges as potential Refco bidder
NEW YORK (Reuters) ? A seventh group emerged as a possible bidder for Refco Inc.?s futures brokerage business, extending the list of suitors pursuing the struggling firm that filed for bankruptcy last week amid a debt scandal.
Refco does business in the US, Canada, Bermuda and Europe and the company lists its Bermuda address as a private mailbox at 48 Par-La-Ville Road, the offices of Mailboxes Unlimited.
TradeLink LLC, a Chicago-based futures commission merchant, its co-founder, Walt Weissman, and Nickolas Neubauer, a member of the Chicago Board of Trade board of directors and former CBOT chairman, are forming an investor group to consider buying some or all of Refco LLC. Weissman is also a former member of the CBOT board of directors.
Refco descended into bankruptcy when customers began withdrawing their assets as chief executive Phillip Bennett was charged with securities fraud on October 12, accused of hiding debt as the company went public in August.
?Refco has a good business model,? Neubauer said in an interview with Reuters. ?Sadly, the company is paying a very high price for the mistakes of a few people. Refco is a great company that serves the industry well.?
Neubauer said his group is mulling an independent offer or a joint bid with other suitors.
Another bidder, US broker-dealer Interactive Brokers Group yesterday said it signed a confidentiality agreement with Refco that will allow IBG access to Refco?s data to conduct due diligence for its offer. The broker-dealer also released details of its planned Refco takeover.
IBG will move Refco onto Interactive Brokers? technology platform, and will operate Refco as an independent entity and maintain its current commission and brokerage payout structure, said IBG chairman Thomas Peterffy in a release.