Shares in interdealer broker Tullett Prebon Plc (LON:TLPR) slumped this morning on news that it was no longer in talks over a possible takeover. The company, which acts as an intermediary between big investment banks, revealed that talks were underway back in early March but since then the two sides have been unable to carve out a deal. Shares in Tullett fell by nearly 13% to 317p.
Elsewhere today Tullett reported a “robust” performance since January 1, with continued market volatility playing to the strengths of the business, although this was lower than during the exceptionally volatile markets experienced in the first half of 2009.
The underlying revenue run rate in the first four months of the year at constant exchange rates was 3% lower than a year ago. In addition the net effect of the broker defections in the second half of last year in North America following a raid on the business by rival firm BGC, was to reduce revenue by 6%. Revenue in the four months to April was £312m, 12% lower than reported for the equivalent period last year, including the adverse impact of currency movements on the translation of Tullet’s non-UK operations.
On the subject of its high profile court action against BGC, which it won in March, Tullett said it was taking action to replace staff in its North America business and that revenues were expected to improve in the second half of the year. It noted that it could take around 12 months for the financial remedies due to the company to be determined and that it was still pursuing claims against BGC and former employees in the US and Hong Kong.
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