Ofex considers rescue plan

THE troubled Ofex stock exchange is considering a rescue plan from a rival share trading company this weekend.

Ofex, a lightly regulated exchange run by JP Jenkins, is home to Rangers and Manchester City football clubs and brewers Adnams and Shepherd Neame. It will run out of money in two months unless further funding is found.

Numis, Ofex's broker, has been approached by 535x, a bulletin board-type system for trading shares. Simon Kiero-Watson, managing director of 535x, said Ofex needed to change or die.

535x proposes that the two bodies merge and advisers to Ofexlisted companies take a stake.

Kiero-Watson told Financial Mail: 'The current market system is expensive and unsustainable. A bulletin board is much cheaper. We've approached Numis and we'd like to find a deal which will work for JP Jenkins, the market and Ofex.'

City sources said that the 535x approach was not the only deal to be brought to Numis. One source said: 'I believe an elegant solution will be found. 535x has an idea of what it wants - whether it gets it is another matter.'

535x is owned by GHW Group, whose directors include controversial financiers Robert Holgate and Peter Shakeshaft. Their earlier venture, Vantage Holdings, was censured by regulators in 1992.

In 2002, the Serious Fraud Office said it was co-operating with the City Police to investigate GHW over claims of stock manipulation on Ofex. The inquiry was later dropped.