Globalization hit the paper energy market yesterday with the bidby the U.S. investment subsidiary of a Dutch banking firm forMerrill Lynch’s energy futures, options and commodities business,and the takeover of Natsource LLC, a leading U.S. broker of naturalgas and electricity, by a London wholesale money broker.

Tullett & Tokyo Liberty plc., which acquired a 25% stake inNatsource last March, picked up the other 75% of the privately heldcompany in a transaction announced Monday. Tullett & Tokyo,also privately-owned, is one of the leading brokers of wholesalefinancial products covering all aspects of the money, securities,derivative and foreign exchange markets.

Natsource provides a major stake in the energy market for theLondon company. Natsource will benefit from T&T’s worldwideoffices in its bid to offer hedging of gas and electric products ona global basis. In addition “one of the big drivers” for Natsourceis the global positioning for the coming worldwide trading ingreenhouse gas emissions, a spokesman said.

The signing by ABN AMRO Inc., affiliated with ABN AMRO Bank N.V.of Amsterdam and Rotterdam, of a letter of intent to acquire theMerrill Lynch unit, was announced Monday. ABN AMRO will assumeresponsibility for clearing and execution of ML’s exchanged-listedenergy futures, options and commodities. “We made a commitment toexpand our global energy operations and this opportunity was anatural extension of that strategy,” said James Gary, executivevice president and global head of futures at ABN AMRO Inc. “Energyis one of the sectors ABN AMRO has targeted for both banking andbrokerage activities.”

Under the terms of the agreement, three principals from MerrillLynch and a supporting team will join ABN AMRO’s global futuresgroup. Sources said Merrill had been shopping the energycommodities business for about a month.

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