JEFFERIES is looking for buyers for Bache, its troubled commodity futures business, the investment bank said yesterday as it reported losses in the fourth quarter.
The broking unit has been hit by tougher regulation and competition from electronic trading facilities.
Jefferies recorded a loss of $92m (£58m) in the three months to 30 November, compared with a profit of $110m in the same period of 2013. If Bache’s results are stripped out, the group made an operating income of $30m.
“As a result of the growth and margin challenges we have recently faced in the Bache business we acquired in mid-2011, we are pursuing strategic alternatives for this business, and discussions with third parties in this regard are already underway,” said Jefferies’ chief Richard Handler.
“We are focused on the potential combination of Bache with another similar business that improves the combined businesses’ competitive standing and margin.”