Market Overview

MF Global Struggles, Corzine Looks to J.C. Flowers & Co., Evercore Partners For Options

MF Global (NYSE: MF) is considering options to sell, and is currently involved in consultations with Evercore Partners, among a possible few (non-disclosed) firms.

Have Jon Corzine's trading risks been the killer or has it been mostly investor fear?

The company reported disappointing 2Q12 earnings, is showing stock value down nearly 50% today, and has caused several price target removals and rating downgrades in the last 72 hours.

According to the Wall Street Journal, MF Global is exploring the possibilities, one of them being "a sale is that a deep-pocketed bank adds MF Global or parts of it to build its exchange-traded derivatives business, which could be especially attractive if new financial regulations as expected push more trading business onto exchanges in coming years."

Also, according to WSJ, Mr. Corzine has close relationship to J.C. Flowers & Co., a private equity firm that likes to take large stakes in distressed financial firms. This relationship may prove beneficial to MF Global as shareholders start to jump ship on negative announcements trying relating the company's hopeful return to maturity before August 2016, when the bonds mature.

Corzine's connections may help assist MF Global back onto its feet, at least that's what we can hope. His relationship with J.C. Flowers & Co. may lead to an investment in MF Global, renaming the company under another moniker. as was the case most recently like that of KBC Groep (EBR: KBC), a deal which closed less than ten days ago.

On the other hand, maybe MetLife (NYSE: MET) can figure out a way to help with its $4.8 billion in cash expected to be on hand at year-end?

***Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

Posted-In: Evercore Wall Street JournalNews M&A Global

 

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