MF Global Holdings Races for Sale by Monday

October 29 00:00 2011

New York, October 29 ( – Battered by the fallout from Europe’s sovereign debt crisis and weakened by a quarterly loss, shares plunging by two thirds and credit rating in dire straits, MF Global Holdings Ltd is bent upon selling all or part of its business this weekend. It was revealed by a source on Friday that with its futures brokerage business seen as the most attractive, MF Global has reached out to major investment banks including Barclays PLC, Citigroup Inc, Deutsche Bank, Jefferies Group Inc, JPMorgan Chase & Co, Macquarie Group Ltd, State Street Corp and Wells Fargo.

The Wall Street Journal reported that private equity firm J.C. Flowers, which has a stake in MF Global, is also in talks about possibly taking it private. The source said “If it gets done, it needs to get done by Monday. Whether it gets sold in parts or pieces, they are in good shape to orchestrate this process.”

No comments were forthcoming either from MF Global or from any of the banks. The problems of the brokerage, run by former Goldman Sachs Chief Executive Jon Corzine, were confounded with the plunging of its credit rating which eroded confidence in its credit worthiness and restricted its ability to borrow which is essential for any financial institution for funding its day to day operations.

MF Global stock dropped as much as 31 percent in early trading to 99 cents, its lowest ever, but later rebounded to $1.29. It was the second most actively traded stock on the New York Stock Exchange.