Stock market not exactly pleased with the Gain-GFT deal, nor with FXCM's withdrawal of its offer to purchase Gain Capital.
The saga of the Gain Capital (NYSE:GCAP) vs. FXCM (NYSE:FXCM) takeover battle culminated late last week with Gain Capital (Forex.com) announcing they were rejecting FXCM's bid, and instead were themselves buying rival GFT. And of course with FXCM then withdrawing its offer to buy Gain.
The result? Not unexpectedly, Gain Capital shares took a pounding. As per the chart below, Gain shares were down 6.6% on Friday after FXCM withdrew its offer.
It would seem that shareholders would have liked to have seen Gain sold to FXCM at a premium. Still, Gain Capitals share price of $5.08 is still well above the $4.27 price set on April 8, when FXCM first announced its hostile bid to take over the company.