Tullett Prebon Jumps as BGC to Pay $100 Million for Poaching

Tullett Prebon Plc, the British interdealer brokerage, climbed as much as 9.1 percent after BGC Partners Inc. agreed to pay $100 million to resolve claims of broker poaching.

The agreement settles all outstanding litigation with New York-based BGC, London-based Tullett Prebon said today in a statement. The firm’s shares climbed 8.1 percent to 311.20 pence in London after earlier rising as high as 314.20 pence.

Tullett Prebon sued its rival in 2009, claiming that a BGC hiring raid cost it $387 million in market capitalization. The two companies agreed not to hire senior personnel from each other for one year as part of today’s settlement, according to the statement.

BGC’s “poaching” of brokers at Tullett Prebon’s New Jersey-based unit was part of a worldwide push to “destroy or cripple” its business by using confidential data to solicit Tullett employees, according to an amended racketeering complaint filed in 2010 in federal court in Newark, New Jersey. BGC said at the time that Tullett Prebon was trying to shift blame for its own failures. While that federal lawsuit was dismissed, other cases, including one in New Jersey state superior court, were still pending.

“We have reached a settlement that resolves 10 outstanding lawsuits involving the two companies,” Hannah Sloane, a spokeswoman for BGC, said in a telephone interview. “Due to this reduction in ongoing legal expense, we expect this to have a positive impact on our distributable earnings going forward.”

Sloane said the settlement won’t affect BGC’s bid to take over GFI Group Inc., another interdealer broker. She said Tullett Prebon also agreed not to poach GFI executives if BGC wins out over CME Group Inc. in the fight to buy that brokerage.

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