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US authorities approve restructuring of Tullett Prebon/ICAP deal

The U.S. Department of Justice approved the restructuring ofTullett Prebon Plc'sproposed acquisitionof ICAP Plc's globalbroking business, saying it addresses concerns relating to directorships.

As originally structured, the deal would have given ICAP a19.9% stake in Tullett Prebon and the right to nominate a member to thelatter's board of directors. The department was worried that, as ICAP andTullett Prebon would continue to compete after the deal, this would create an"interlocking directorate" that could lead to a "cozyrelationship among competitors." The revised deal will provide that ICAPwill not own a stake in Tullett Prebon or have the right to nominate a director.

The companies had previously offered to ICAP's London-based oil desks inorder to address competition concerns. The U.K.'s Competition and MarketsAuthority has served the two parties with an initial enforcement order,stipulating that the divested business and Tullett Oil must maintain strictlyseparate identities.