STOCKS NEWS EUROPE-ICAP weak on 'Wells' notice move

Shares in ICAP (IAP.L) fall 1.4 percent, underperforming a firmer blue chip index unsettled by news the firm's U.S. subsidiary has received a formal 'Wells notice' from the Securities and Exchange Commission (SEC) relating to possible violations of Federal securities law.

In a statement posted after the market close on Friday, ICAP said the notice, which is not a formal allegation nor a finding of wrongdoing but displays the SEC's intention that it is considering bringing a civil action against an individual or a company, relates to an investigation into ICAP's fixed income business which has been ongoing since 2005.

ICAP said it "has discussed these matters with the SEC, has substantial disagreements with the SEC … and will vigorously put forth its position if and when any such charges are brought".

Panmure Gordon, in a note on Monday, says the Wells notice gives the recipient a final opportunity to argue why the SEC should not proceed with enforcement action and, according to the Wall Street Journal, the SEC typically approves only about half of all actions recommended by its staff.

The broker repeats its "sell" rating on ICAP with a 375 pence price target.

For more double click on ICAP's statement [ID:nRnsW3279B]

Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net