Cantor to merge eSpeed and BGC

As a consequence of the agreement, BGC has announced that it will withdraw its initial public offering proposal of February 8, 2007.

eSpeed will acquire BGC through the issuance of 133,860,000 shares, valued at $9.75 per share, of its common stock and rights. This represents a premium of 6.09% to the closing price of eSpeed’s Class A common stock on Tuesday. BGC Partners’ Class A common stock is expected to trade on the NASDAQ Global Market under the symbol BGCP.

The merged entity, which will provide both voice and electronic brokerage services,is expected to generate increased scale efficiency and a reduction in overall costs. BGC Partners Inc also aims to improve voice broker productivity, and accelerate the pipeline from voice to fully electronic. The new business will enter into a new service agreement with Cantor and is projected to generate revenues of around $1 billion for 2007, and in excess of $1.1 billion for 2008.

The merger is subject to approval from US and UK competition authorities and is expected to close in the fourth quarter of 2007 or in the first quarter of 2008.

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