FXCM makes all-stock 'bear hug' offer to acquire Forex.com

NEW YORK - April 9, 2013 - PRLog -- In a move which has shocked the FX world, FXCM has made an offer to acquire Gain Capital (Forex.com) for $5.35 per share, or a total of $210 million -- all payable in FXCM stock. FXCM has circumvented Gain Capital (Forex.com) management, by taking its offer directly to Gain's board.

That's the headline. But where does it go from here? We of course can't know for sure. But what is typical is that the Gain board will dutifully consider the offer, reject it as valuing the company too low, but use that as a lever to elicit a better offer from FXCM, or another suitor. With Gain Capital not showing any great operational promise, and its share price languishing in "dead IPO" range, it is highly likely that Gain's major shareholders would like the opportunity to cash out, and as such the board might try to get FXCM to add a cash component to their offer.

This could get ugly. These are both public companies, and this will all play out in the public eye. What really happened here? Is it a fair valuation for Gain? And what is likely to happen next? See LeapRate for details at http://leaprate.com/forex-industry-news/entry/fxcm-makes-all-stock-bear-hug-offer-to-acquire-gain-capital-forex-com.html