Turquoise in buyer search
UBS was yesterday in the initial stages of finding a buyer for fledgling trading platform Turquoise, as the market mulled over how to value the loss-making business.
The pan-European trading platform launched in August 2008 – one of a number that arrived on the scene after European deregulation – and has been able to capture a seven per cent market share in that time.
However the loss-making company has twice been back to its nine investment bank backers to ask for cash and also considered raising new capital in May.
UBS has sent sales documents to all major exchanges and so-called multilateral trading facilities (MTFs), including the London Stock Exchange (LSE), which has not ruled itself out as a potential bidder.
But industry sources yesterday said that it would be hard for existing exchanges to value the business, which is losing money “hand-over-fist” and is dependent on clients that could easily take their business elsewhere.
Turquoise chief executive Eli Lederman said that shareholders had done what they wanted by catalysing competition in Europe and were ready to move on.
“They’re now happy to cede control to someone – if the right party or parties appear – to back Turquoise’s next steps as a positive influence on European market structure,” he said.