After a long and hectic auction process, filled with bidding, outbidding and dropping bids, Man Group Plc, the world's largest publicly traded hedge fund company, won the auction and outbid at least four competitors for the assets of the troubled Refco Inc., Bloomberg News reports.
The U.S. Bankruptcy Judge Robert Drain was expected to approve the sale.
Man Group beat the bids of Interactive Brokers Group, the Dubai government, and U.S. buyout firm J.C. Flowers & Co.
The final, winning bid made by Man Group has not been disclosed as of yet. "As an existing market participant, they'll be able to quickly integrate the customer base," said Dennis Dutterer, former CEO of Chicago-based Clearing Corp.
Many of Refco's clientele fear that their assets, which are being held by Refco, may not be protected and may be sold. However, the Judge assured that this will not happen.
The sale of Refco is "good for the industry, good for the customers, and good for the employees because it adds certainty to where there is uncertainty now," said Gary DeWaal, Chicago-based general counsel for Fimat USA.