Refco gets 5 bids for some operations

The Associated Press
November 7, 2005

NEW YORK -- Refco Inc., the troubled commodity-brokerage firm, Monday said it received five bids for its U.S., Europe and Asia operations. Friday, after the financial markets closed, Refco said it would not disclose the names of the bidders or any terms.

However, Man Group PLC of Britain said Monday that Man Financial, its brokerage business, has submitted a bid for parts of Refco, which filed for bankruptcy last month amid a scandal involving its former chief executive.

New York-based Refco said it is "extremely pleased" with the number and quality of the bids received and said it will notify qualified bidders by Monday at 5 p.m. The company also said an auction will be held Nov. 9 and the winning bid is expected to be presented to the court at a hearing Nov. 10. Bids for Refco's regulated commodities and futures arm were due Friday at 4 p.m.

The largest known bid was from Refco competitor Interactive Brokers Group LLC, which had offered $858 million. An $828 million rival bid was also expected from a Delaware corporation formed by the Dubai Investment Group and Yucaipa. Original bidder JC Flowers & Co. had dropped its $768 million offer after a U.S. bankruptcy court reduced the deal's break-up fee.

Refco and 23 affiliates filed for bankruptcy protection Oct. 17, after its former chief executive Phillip Bennett was charged with covering up a $430 million debt to the company.

Labels: Phillip Bennett, Refco