BGC Group falls as Lutnick signals intent to divest stake

Bgc

22/11/2024 19:30

** Shares of brokerage firm BGC Group  BGC.O  slide as much as
7.5%, last down 6.1% at $9.54
** CEO Howard Lutnick announced Thursday he intends to divest
his interests in Cantor, BGC and Newmark upon U.S. Senate
confirmation to comply with government ethics rules
** President-elect Donald Trump earlier this week picked Lutnick
to run the Commerce Department
    ** Lutnick says he does not expect any arrangement that
involves selling shares on the open market
    ** Wall Street veteran expects to recommend BGC board that
John Abularrage, Jean-Pierre Aubin and Sean Windeatt be named
co-CEOs of BGC effective upon his confirmation by the U.S.
Senate
    ** Piper Sandler says loss of Lutnick's leadership is a net
negative for BGC overall, but it is confident that new
leadership can keep the business humming
    ** Adds that proposed new leadership team already handles
much of the day to day for BGC and can continue building upon
the strong momentum in its core brokerage business
    ** As of last close, BGC shares up 40.7% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)
((mailto:ArasuKannagi.Basil@thomsonreuters.com))