Babcock & Brown, ANZ and other industry heavyweights have given troubled stockbroking firm Tricom a multi-million dollar shot in the arm.
International fund manager Babcock & Brown injected an additional $5 million into the business, increasing its overall exposure of $35 million to a maximum of $40 million.
The move was to protect Babcock & Brown's exposure and to ensure a controlled rundown of Tricom's securities loan book, a company statement to the Australian Securities Exchange said.
"The recapitalisation gives Tricom a greater focus on the successful core broking, funds management, wealth management and corporate finance businesses," a Tricom spokeswoman told InvestorDaily.
"It also means a continued reduction in the securities lending book. The recapitalisation does allow for another partner or potential acquirer and discussions are continuing."
Both Babcock & Brown and ANZ have an option to acquire up to 25 per cent of Tricom over the next three years.
However, Tricom has the right to introduce a third party with capital and broking expertise.
The Australian-owned global investment, advisory and trading house spooked the market in January by triggering a $100 million margin call.
Its underwriters Credit Suisse, Merrill Lynch and ANZ ordered the stockbroker to axe its securities loan book as a result.
Tricom has reduced its securities lending book from approximately $2.4 billion in June 2007 to $340 million at March 17, 2008.
In February Bell Financial Group agreed to purchase the firm, but the deal fell through last month.
