Tullett Prebon Confirms Talks Over Possible Bid; Shares Up - Update

(RTTNews) - London-based inter-dealer broker Tullett Prebon plc (TLPR.L: News ) Wednesday confirmed that it is in preliminary discussions with a third party regarding a possible offer for the company. The company, however, did not reveal the bidder's identity. Following the announcement, Tullett's shares have climbed more than 21% on the LSE.

The company also stated that the talks may or may not lead to an offer for the entire issued share capital of the company. The company will make a further announcement in due course.

There were recent press speculation regarding a bid approach for the company. As per media reports, Tullett has been linked with a bid from Bank of China (BACHY.PK), Australia's Macquarie Group (MQBKY.PK: News ,MQG.AX: News ) and New York-based GFI Group (GFIG: News ). Tullett and GFI had entered into merger talks in 2008, but it failed, reports said.

Last week, Tullett reported a rise in fiscal 2009 pre-tax profit to GBP 156.5 million, helped by higher revenues and the active management of front office costs together with the benefit of cost reduction actions taken at the end of 2008. Earnings attributable to shareholders were GBP 110.8 million or 51.2 pence per share for the year, compared to GBP 94.5 million or 44.0 pence per share a year earlier. Annual revenues increased to GBP 947.7 million from GBP 943.6 million last year.

TLPR.L is trading at 377 pence on the LSE, up 66.80 pence or 21.53%, on a volume of 6.28 million shares.

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by RTT Staff Writer

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