International News

FINANCIAL NEWS IS hot

Canadian data-broker Thomson Corp. in May made an offer to buy Reuters, the 156-year old London-based news service. The same week News Corp. Chairman and Chief Executive Rupert Murdoch approached Dow Jones, the parent of Wall Street Journal, with a $5 billion offer. The offer was rejected by the family controlled Dow Jones despite it being a significant premium to the current stock price.

The boards of Thomson and Reuters Group have confirmed that they are in discussions.

IB GOES PUBLIC

Interactive Brokers Group Inc. increased the size of its IPO by 16% and raised the price to $30.01 per share, from the expected range of $27 to $30, on the eve of its IPO. On the first day of trading, the stock closed up more than 4% but since has traded down to $28.

"The IPO was very heavily subscribed because everybody wanted to get a piece of this industry right now," says Patrick O'Shaughnessy, equity analyst for Morningstar Inc. "Perhaps the immediate demand has fallen and now the stock price is reflecting more accurately the company's fundamentals."

NO SANCTIONS FOR LOCUSTS

Two years ago, in the heat of national elections, German politician Franz Muentefering derided hedge funds as 'locusts' and called for their destruction. After the election, the German government quietly declared the vehicles safe, and now European Union Internal Market Commissioner Charlie McCreevy has again reiterated his long-stated belief that the industry can police itself.

OMX LOOKS TO BALKANS

Swedish-Finnish exchange operator OMX is continuing its growth in Eastern Europe, with a letter of intent to acquire the Armenian Stock Exchange and the Central Depository of Armenia.

TRADING FISH

The Fish Pool exchange in Norway will offer cleared futures contracts for fresh salmon. The salmon industry is one of the most industrialized seafood sectors.

BANKS FORM NEW EXCHANGE

Shares in TSX Group Inc., parent of the TSX and the TSX Venture Exchange, took a 12% hit in May when the six largest banks in Canada along with Canaccord Capital Corp. announced plans to set up their own electronic trading operation to compete against the Toronto Stock Exchange.

Copyright Futures Magazine Group Jun 2007
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