November 5, 2011 / 7:29 AM / 7 years ago

MF Global Asia bidding extended on surge in offers

A man exits the office complex where MF Global Holdings Ltd have an office on 52nd Street in midtown Manhattan New York, October 31, 2011. REUTERS/Brendan McDermid

HONG KONG (Reuters) - Bidding for MF Global’s MFGLQ.PK operations in Asia and Australia was extended by one day because of an influx of offers for the collapsed U.S. brokerage, a provisional liquidator for the company’s Hong Kong unit said on Saturday.

MF Global filed for bankruptcy in the United States on Monday after risky bets on debt from troubled euro zone nations scared away clients and investors.

Patrick Cowley, a principal at KPMG in Hong Kong and one of the provisional liquidators for MF Global’s Hong Kong units, told Reuters on Friday they had received almost 40 inquiries from potential buyers for the business and expected to seal an agreement by Sunday.

That number jumped to more than 50 potential bidders as of Saturday and the bidding was extended to 8 p.m. Monday, KPMG said.

“As we have received a significant increase in the number of interested parties in the last 24 hours, in order to run a full and fair process, and to generate the most value for stakeholders, we have taken the decision to extend the window of opportunity for bidders to prepare, Cowley said in an e-mailed statement.

“We remain confident that a deal can be reached that will keep the MF Global Asian franchise intact,” he added.

In Asia the brokerage has large derivative businesses in Singapore and Australia as well as offices in Hong Kong, Tokyo, Taipei, Shanghai and a joint venture in India with Sify Technologies Ltd (SIFY.O).

MF Global’s last annual report said it generated around 14.4 percent of its global revenue in Asia during the 2010-2011 financial year, which would be around $321.6 million (200.5 million pounds) before interest and transaction-based expenses.

Reporting by Elzio Barreto; Editing by Ed Lane

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