Instinet on the Block
Silver Lake Partners is ready to cash in on its move into the trading business.
The private equity firm has put stock broker Instinet on the block and is also selling part of its stake in the Nasdaq Stock Market (NDAQ).
A spokesman for Instinet, which is owned by private equity firm Silver Lake, said Tuesday that the company is considering a sale or an IPO. But the firm could also decide to do nothing. Instinet has "been approached with several inquiries" about selling the company and is "weighing its options," the spokesman said.
Silver Lake owns more than 65% of Instinet, and the remaining shares are owned by management, according to the spokesman.Sources close to the company say that non-U.S. based brokers, such as ABN Amro (ABN), might be particularly interested in the company, because of Instinet's specialty in trading foreign stocks. Another interested party could be Knight Capital (NITE), the big Nasdaq trading firm, according to some specialists. Silver Lake bought Instinet last December for $208 million as part of an investment in the Nasdaq Stock Market. Instinet is now an independent private company owned by Silver Lake.
Meanwhile, Instinet, which is also a large owner of Nasdaq shares, has recently unloaded a chunk of shares. According to a filing with the Securities and Exchange Commission late Monday, Instinet sold over 600,000 shares of Nasdaq last week, a stake worth nearly $18 million. Silver Lake also owns a large stake in Nasdaq through convertible notes that on an as converted basis make up over 11 million Nasdaq shares. Silver Lake's direct investment in Nasdaq has not changed as a result of Instinet's recent sale of shares.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV