Bloomberg News

MF Global Overseer Has ‘Multiple’ Likely Buyers in LME Stake

November 16, 2011

(Adds MF Global shares in fourth paragraph.)

Nov. 15 (Bloomberg) -- MF Global Holdings Ltd.’s shares in the London Metal Exchange attracted interest of “multiple” possible buyers, MF Global’s U.K. administrator said.

There is also an effort to solicit interest in the LME shares, Richard Heis of KPMG LLP and joint special administrator of MF Global U.K., said in an e-mailed statement in response to questions from Bloomberg News.

“There is no requirement to sell them in conjunction with MF Global’s metals business and there is no immediate pressure to sell the shares,” Heis said. “Should an attractive offer be received through this process, it will be considered in accordance with our obligations to realize assets.”

MF Global U.K., one of 12 category 1 members that gave it the right to trade on the floor, was stopped from trading on the LME on Oct. 31 after MF Global Holdings filed for bankruptcy protection. The unit owns 600,000 ordinary shares of the LME, out of a total of 14.3 million, according to a U.K. Companies House filing on Oct. 24. They would be worth almost $4.7 million based on the last price of the shares.

The LME, which handles 80 percent of global trade in metals futures, said in September it had received more than 10 “expressions of interest.” A bid may be recommended to shareholders as early as March, Martin Abbott, chief executive officer of the exchange, said at the time.

Goldman Sachs Group Inc. owns 1.23 million ordinary shares, while Metdist Ltd., a U.K. metals trading company, owns 912,000 shares, according to the filing. J.P. Morgan Metals Ltd. and J.P. Morgan Securities Ltd. have 550,000 ordinary shares in all.

The ordinary shares confer ownership and traded at 4.925 pounds ($7.82) in July, according to the LME website.

--Editors: Claudia Carpenter, John Deane

To contact the reporter on this story: Agnieszka Troszkiewicz in London at atroszkiewic@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net


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