Turquoise in buyer search

UBS was yesterday in the initial stages of finding a buyer for fledgling trading platform Turquoise, as the market mulled over how to value the loss-making business.<br /><br />The pan-European trading platform launched in August 2008 &ndash; one of a number that arrived on the scene after European deregulation &ndash; and has been able to capture a seven per cent market share in that time.<br /><br />However the loss-making company has twice been back to its nine investment bank backers to ask for cash and also considered raising new capital in May.<br /><br />UBS has sent sales documents to all major exchanges and so-called multilateral trading facilities (MTFs), including the London Stock Exchange (LSE), which has not ruled itself out as a potential bidder.<br /><br />But industry sources yesterday said that it would be hard for existing exchanges to value the business, which is losing money &ldquo;hand-over-fist&rdquo; and is dependent on clients that could easily take their business elsewhere.<br /><br />Turquoise chief executive Eli Lederman said that shareholders had done what they wanted by catalysing competition in Europe and were ready to move on.<br /><br />&ldquo;They&rsquo;re now happy to cede control to someone &ndash; if the right party or parties appear &ndash; to back Turquoise&rsquo;s next steps as a positive influence on European market structure,&rdquo; he said.