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What: Shares of Sify Technologies
So what: Reuters reports that the Australian division of the failed futures broker has been shut down after failing to draw a reasonable offer, which bodes poorly for the prospects of its Asian businesses. MF Global has derivative businesses throughout Asia, as well as a joint venture in India with Sify.
Now what: Vineet Bhatnagar, managing director of MF Global Sify Securities, said earlier in the month that operations were continuing normally, while Sify has flexibility to consider all of its options. Sify's stake in the venture is a non-controlling minority interest, which exposes the company to downside while lacking significant influence on the business. With the MF Global situation continuing to unfold, investors are skittish about what additional downside Sify may face.
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