Exane BNP Paribas initiates ICAP coverage at 'outperform'

(ShareCast News) - The disposal of ICAP's voice business has prompted Exane BNP Paribas to initiate coverage of the FTSE 250 company at 'outperform', with a target price of 590p.Tullett Prebon agreed to buy ICAP's hybrid voice broking and information business in an all-shares deal on 11 November.Exane BNP Paribas said the disposal is highly beneficial, with an upside beyond the market reaction it has already enjoyed."This disposal frees up capital and allows management to focus on its best assets: Post Trade and Electronic," it noted."Structural changes, driven by OTC regulation, should prove a significant tailwind for Post Trade."It said it expected the company to grow into new asset classes in its electronic division as well."Such assets have been acquired by global exchanges and we see scope for ICAP to be a target itself."The new ICAP will be leaner, more efficient and faster growing."Shares in ICAP had dipped slightly by 1155 GMT, down 1.5p (0.3%) to 500p per share.