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Non-Tech : Knight/Trimark Group, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: gbh who wrote (5097)	10/15/1999 1:48:00 AM
From: Gary Korn	Read Replies (1) \| Respond to of 10027

The Wall Street Journal Copyright (c) 1999, Dow Jones & Company, Inc. Thursday, October 14, 1999 Strike, Brass Utility Set Merger as ECNs May Start Pairing By Greg Ip Staff Reporter of The Wall Street Journal Two of the nine ECNs that are challenging traditional stock markets have agreed in principle to merge, which could signal the beginning of a long- expected consolidation among the systems. The board of Strike Technologies LLC agreed in principle to a merger offer from Brass Utility LLC, popularly known as Brut, people familiar with the matter said. There remain obstacles, and a final deal may not materialize, these people cautioned. "We are in discussions with [Brut], and we have agreed to proceed with these discussions, but we've also had discussions with other parties," said Arthur Pacheco, president and chief executive of Strike. Brian Hyndman, president of Brut, confirmed the two are in discussions. But he said he was unaware of any decision by Strike. He added, "Strike is not the only [organization] we're talking to." Both Strike and Brut are ECNs, or electronic-communications networks, which display and automatically execute stock orders. Both are based in New York and are owned predominantly by large Wall Street brokerage firms. They are small players at present. Brut trades about eight million shares a day, and Strike about five million. Market leader Instinet, a unit of Reuters Group PLC, trades 170 million, according to investment firm Putnam Lovell de Guardiola & Thornton Inc. Financial terms couldn't be determined. Under a "term sheet" that forms the basis of Brut's offer, the current shareholders of the two entities would become 50% owners of the merged entity, said the people familiar with the matter. The Wall Street brokerage-firm shareholders of each would contribute four seats to the nine-seat board, with the ninth filled by SunGard Data Systems Inc., 56% owner of Brut and a supplier of back-office technology systems to Wall Street firms. Brut's shareholders include Merrill Lynch & Co.; Morgan Stanley Dean Witter & Co.; and Knight/Trimark Group Inc.; Strike's include Bear Stearns Cos.; Salomon Smith Barney, a unit of Citigroup Inc.; and Lehman Brothers Inc. Goldman Sachs Group Inc. has a stake in both, as well a stake in Archipelago Holdings LLC, another ECN. ---- INDEX REFERENCES ---- COMPANY (TICKER): SunGard Data Systems Inc. (SDS) NEWS SUBJECT: Corporate Actions; Stock Market News; Acquisitions, Mergers & Takeovers; World Equity Index; Wall Street Journal (CAC STK TNM WEI WSJ) MARKET SECTOR: Consumer Cyclical; Financial; Industrial (CYC FIN IDU) INDUSTRY: Information & On-Line Services; Media; Publishing;