eSpeed is said to be fighting for MTS, which boasts a strong presence in the European Government Bonds (EGB) market, because it believes a partnership between the two companies will enhance its platform for trading government securities and related fixed-income products.
The company is also planning to take on MTS’s brand and existing European management team, and hopes to maintain the firm as the centerpiece of its European operations.
The move comes a week after it was reported that pan-European exchange Euronext and Borsa Itlaian made a joint offer for a 51% stake that put MTS at E245 million ($295.2 million). eSpeed’s bid apparently values the firm 5m euros higher, at E250 million ($301.3 million).
eSpeed has also offered to buy up to an additional 20% of the share capital of MTS from current MTS shareholders following closing.
If the offer is accepted, eSpeed said it will finance the acquisition from existing working capital and from an unsecured loan facility of $60m from parent company Cantor Fitzgerald, a US Treasury specialist.
A decision is expected to reach eSpeed by the first week of July 2005 as to whether the majority of MTS shareholders have accepted its offer.
