Bet pays off for City grandee Spencer

CITY grandee Michael Spencer could collect a multi-million payout after the owner of spreadbetting firm City Index received an approach from a US rival.

Sources in the City said INTL FCStone, a New Yorkheadquartered commodities trading house, has been talking to Gain Capital, the owner of City Index.

Spencer, founder of interdealer broker Icap and a former Conservative party treasurer, remains a shareholder in Gain Capital after selling City Index to the US-listed business for £74million in 2014.

He owns 2.5 per cent of Gain Capital via his investment firm IPGL, according to data firm Bloomberg. Spencer is said to be in line for a peerage.

City Index gives punters the opportunity to make high-risk bets on rises and falls in the price of shares, commodities and currencies.

London-listed ‘contract for difference’ broker Plus500 approached Gain Capital last summer, but talks later broke down.

Gain Capital and INTL FCStone declined to comment.