Instinet Group Incorporated acquired Island Holding Company, Inc., both based in New York. The transaction closed on September 20, 2002, and is valued at US$500 million. Pursuant to the terms of the transaction, Island became a wholly owned subsidiary of Instinet. Instinet, through affiliates, is the largest global electronic agency securities broker. Island operates The Island ECN, Inc. an electronic marketplace.
In Canada, the acquisition involved notification or approval pursuant to securities legislation in five provinces and approval by the Investment Dealers Association of Canada. Instinet Corporation, Instinet Canada Limited, Instinet Group Incorporated and Island Execution Services, LLC, were represented by Rene Sorell and Greg McNab (securities) and Oliver Borgers (competition) of McCarthy Tétrault LLP in Toronto. In the U.S., Yvette Teofan and John Sorkin of Cleary, Gotlieb, Steen & Hamilton in New York represented Instinet Group. Instinet was represented in-house by Paul Merolla, executive vice-president and general counsel; Robin Elkowitz, senior vice-president and senior associate general counsel; and Maria Petti, vice-president and associate general counsel.
In Canada, Island ECN was represented by Simon Romano and Ed Waitzer of Stikeman Elliott. In the U.S., Alfred Rose, Julie Jones, David Coombs and Sean Murphy of Ropes & Gray in Boston represented Island Holding Company.