Icap ended the day as the biggest faller in the FTSE 100 after founder and chief executive Michael Spencer cashed in nearly £31m worth of shares in the interdealer broker.
Spencer's private company IPGL sold 6m shares in Icap, cutting his stake in the company to just over 16%. The shares were placed with a range of institutions by HSBC at 512p each. Most of the proceeds of the sale will be used to meet obligations relating to a renewed loan facility for IPGL, which owns spread betting business City Index, from HSBC. The refinancing of IPGL followed a series of write offs, mainly relating to its spread betting clients. But it has now reduced borrowings from £335m in October 2008 to £130m.
Spencer previously sold a chunk of shares in January this year, which was followed a few weeks later by a profit warning from Icap. At the time the company emphasised all procedures relating to Spencer's share sale had been followed correctly.
Today Icap shares closed 9p lower at 519p.
