Tullett Prebon and GFI: Who’d think of hedging?

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Tullett Prebon and GFI: Who’d think of hedging?

The seemingly never-ending saga of the merger between Tullett Prebon and GFI took yet another twist this week when the two companies announced they were unable to agree terms.

At this stage, I have to confess one of my muckers in the national press called me a couple of weeks ago to ask me if I thought the dollar’s meteoric climb against sterling would undermine the deal. “I haven’t got a clue,” was my response. “I thought it was an all-share transaction.”

Still, it seems that respective valuation issues have again scuppered any imminent hope of a deal. You have to laugh – after all, both brokers are meant to be experts in derivatives, which, as far as I recall, are extremely useful tools to hedge financial exposure.

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