Bloomberg News

JPMorgan Agrees to Buy MF Global Shares in London Metal Exchange

November 23, 2011

Nov. 23 (Bloomberg) -- JPMorgan Chase & Co. agreed to buy the London Metal Exchange shares of MF Global U.K. Ltd., while talks on the sale of remaining assets in the U.K. continue, the special administrator said.

MF Global filed for bankruptcy protection last month after making bets that went bad on European sovereign debt. Its British unit, MF Global U.K. Ltd., one of 12 category 1 members of the LME that normally hold the right to trade on the floor, was stopped from trading on the bourse on Oct. 31. The company’s special administrator in Britain, KPMG LLP, put the unit’s stake on sale.

Following a “competitive bidding process,” JPMorgan agreed to purchase all of MF Global’s shareholding, Richard Fleming, Richard Heis and Mike Pink, the special administrators of MF Global U.K. Ltd. at KPMG, said today in an e-mailed statement.

“The sales process for various aspects of the MF Global U.K. business continues apace and we are in negotiations with several parties to this end,” Heis said in the statement.

The unit owned 600,000 ordinary shares out of 12.9 million, a 4.7 percent stake, and 25,000 nonvoting B shares out of 1.36 million, according to a U.K. Companies House filing on Oct. 24. JPMorgan may pay about 25 million pounds ($38.8 million) for the stake, a person familiar with the process said yesterday. The statement today didn’t provide the price.

JPMorgan has raised its holdings in the LME over the past year. It owned 800,000 shares as of Oct. 24, compared with 550,000 shares a year earlier, according to filings with Companies House.

--Editors: John Deane, Stuart Wallace

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

To contact the editor responsible for this story: John Deane at jdeane3@bloomberg.net


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