Wednesday, 20 August 2014
Last updated 5 hours ago
Mar 16 2007 | 12:26pm ET
A Los Angeles hedge fund is seeking to wrest control of electronic trading network eSpeed from Cantor Fitzgerald in its bid to get eSpeed put on the market.
Chapman Capital filed a Schedule 13D yesterday with the Securities and Exchange Commission, hoping to compel eSpeed’s board of directors to convert all Class B shares—which have 10 votes each and are used by Cantor and its CEO, Howard Lutnick, to control the firm—into regular Class A common shares, with one vote apiece. Cantor and Lutnick own a minority stake in the company; Chapman controls 9.3% of eSpeed’s common stock.
“Particularly in light of eSpeed’s Feb. 13, 2007, disclosure regarding its weak 2007 financial outlook and incongruous granting of free stock options representing nearly 3% of the outstanding Class A common shares to the executive most responsible for such operating underperformance, Mr. Howard W. Lutnick, the company’s ownership base has conveyed a nearly uniform desire for eSpeed’s Class A shares to be maximized through a change-of-control transaction,” Chapman Capital managing member Robert Chapman said.
Chapman said his firm has begun contacting eSpeed’s competitors to gauge interest in the firm.
Aug 4 2014 | 7:42am ET
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The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note