Shares of US-listed brokerage company GAIN Capital are trading higher by almost 23 percent as of writing, amid a rumor that the company received an acquisition offer from one of its major rivals. Finance Magnates has been unable to confirm the news and has reached out to the company for an official statement, to which the company responded that it does not comment on market rumors or speculation.
The source of the initial report appears to be a UK-based website called Betaville. The short alert posted on that website stated that the offer is coming from “usually well-informed sources”. We will keep our readers updated on the matter as the story unfolds.
Most recently, shares of GAIN Capital have been trading close to all-time lows below $4 per share. The company has been struggling to maintain the level of trading volumes it transacted before the ESMA’s new regulatory framework took effect.
While we speculate on the potential acquisition offers, some names come to mind. The obvious candidates are well-capitalized brokers like IG Group, which just entered the US market, and the current stronghold in the retail FX space, which has a significant interest in FXCM, Jefferies.
Companies which do not hold a US license also could be prospective buyers but are much less likely to pursue a direct purchase of their rival. In the meantime the stock continues to rally, hitting 30% higher on the day.