BrokerTec sold to rival for £153m

INTERDEALER broker ICAP is to buy New York fixed interest interdealer broker BrokerTec for up to $240m (£153m). BrokerTec, which is owned by a consortium of 14 investment banks, runs its own electronic trading platform which began operating in June 2000.

To date it has handled more than $38 trillion of trades averaging more than $140bn a day. It is also under investigation by the US Justice Department over claims that its owners unfairly put all their business through its system.

ICAP will pay $153.8m in shares for BrokerTec with the remainder dependent on it earnings over the next 12 months. Some BrokerTec shareholders have guaranteed revenues in the next three years.

The deal pushes ICAP towards Cantor Fitzgerald, whose New York business has concentrated on its electronic platform eSpeed. The two fought a colourful court case in London last month over poaching staff. ICAP chief executive Michael Spencer said the deal would 'satisfy industry demand for premier hybridbroking services'. ICAP shares dropped 8p to 808 1/2p.