Man Financial, one of the world’s largest hedge funds, won the Refco (RCXCQ:OTC – commentary – research – Cramer’s Take) sweepstakes Thursday, paying $282 million in cash for what’s left of the scandal-tarred commodities and derivatives brokerage.
The London-based hedge fund emerged as the winning bidder for Refco’s regulated futures brokerage and trading business, following an all-day auction held at the offices of Refco’s bankruptcy attorneys, Skadden, Arps, Slate, Meagher & Flom.
The $282 million purchase price is a steal compared to the $1 billion figure that many on Wall Street had been predicting that Refco’s futures trading, brokerage and clearing business could fetch. Man is also picking up $37 million in outstanding liabilities of Refco.
