CORRECTED - Brokers GFI and Tullett in merger talks - paper

Thu Jul 31, 2008 12:58pm BST
 
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(Corrects fifth paragraph to read "second-quarter results" instead of "third-quarter results")

LONDON, July 31 (Reuters) - GFI Group Inc (GFIG.O) and British rival Tullett Prebon (TLPR.L) are "days away" from merging to become the world's biggest interdealer markets broker, Financial News reported on its Web site on Thursday.

The deal will be structured as a merger of equals, Financial News said, citing a source close to the talks.

Both GFI and Tullett declined to comment.

A GFI spokesman said last November it had held merger talks with Tullett Prebon in July that year but the discussions were broken off because the two could not come to a "mutually satisfactory conclusion".

GFI group is due to report its second-quarter results later on Thursday.

Shares in Tullett were 0.4 percent higher at 449 pence at 1110 GMT.

If a merger goes ahead the new group would overtake ICAP (IAP.L) as the world's biggest interdealer broker by headcount.

Tullett generated revenues of 753.8 million pounds ($1.49 billion) in 2007 while those of GFI came in at $970.5 million.

That compared with ICAP's revenue of 1.3 billion pounds ($2.58 billion) in the financial year ending March 31. (Reporting by Daisy Ku; Editing by Greg Mahlich)

 

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