JPMorgan (JPM) Might Scoop Up MF Global's Large LME Stake, Move Past Goldman as Largest Holder
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Following chatter that bankrupt MF Global (OTCBB: MFGLQ) will be looking to sell it's near-5 percent stake in London Metal Exchange, word this morning is that it might be in detailed discussions with a major U.S. financial firm in the deal.
And it's name rhymes with K.G. Borgan.
That's right, MF and J.P. Morgan (NYSE: JPM) may be in talks about the large LME stake. According to Sky News blogger Mark Kleinmann, the deal would jettison JPMorgan past rival Goldman Sachs as LMEs largest shareholder. With MF global holding about a 4.65 percent stake in LME, the acquisition would put JPMorgan with about a 10.8 percent interest in LME, compared with just 10.0 percent for Goldman.
Needless to say, JPMorgan would have much more clout with LME in deciding it's future direction.
JPMorgan may not get the stake, though, with several firms also in talks and a floating expiration on the deal. Further, MF auditor KPMG, who is running the talks, may decide not to sell the stake.
And, JPMorgan has been keenly interested in commodities, paying about $1.6 billion in 2010 for a chunk of Royal Bank of Scotland's (NYSE: RBS) Sempra commodities arm.
On the news today, JPMorgan is up 1.5 percent.
And it's name rhymes with K.G. Borgan.
That's right, MF and J.P. Morgan (NYSE: JPM) may be in talks about the large LME stake. According to Sky News blogger Mark Kleinmann, the deal would jettison JPMorgan past rival Goldman Sachs as LMEs largest shareholder. With MF global holding about a 4.65 percent stake in LME, the acquisition would put JPMorgan with about a 10.8 percent interest in LME, compared with just 10.0 percent for Goldman.
Needless to say, JPMorgan would have much more clout with LME in deciding it's future direction.
JPMorgan may not get the stake, though, with several firms also in talks and a floating expiration on the deal. Further, MF auditor KPMG, who is running the talks, may decide not to sell the stake.
And, JPMorgan has been keenly interested in commodities, paying about $1.6 billion in 2010 for a chunk of Royal Bank of Scotland's (NYSE: RBS) Sempra commodities arm.
On the news today, JPMorgan is up 1.5 percent.
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