Private equity firm JC Flowers has backed out of a deal to purchase Refco, Financial News Online reports. Meanwhile, competitive bidders are offering as much as $100 million more than JC Flowers' $768 million.
Judge Robert Drain said he would consider JC Flowers' offer only if the firm reduces its break-up fee from $15 million to $5 million. The judge also wants to withdraw an option that would allow JC Flowers to make an offer on Refco assets beyond its futures arm.
Interactive Brokers Group has raised its bid for the firm to $858 million, and beat the bids of Dubai Investment Group, and that of the Yucaipa Cos., which has offered $828 million.
All bids must be in by Nov. 4.