Refco in Tentative Deal to Sell

Refco Inc., the futures broker reeling from a bad-debt scandal, said late Monday that it had signed a preliminary agreement to sell its futures units to a group led by buyout firm J.C. Flowers & Co. for $768 million.

The company also said it had filed for bankruptcy protection.

New York-based Refco is moving forward with a sale to the Flowers-led group amid protests from would-be rivals. The investment arm of Dubai’s government and Blackstone Group, one of the world’s biggest buyout firms, are part of a consortium that may seek to trump the Flowers-led offer.

“Seeing that there is a bid that entertains the entire business concern, it should be seriously considered by the board and its advisors,” said Raul Henriquez, who runs an investment firm that has been a client of Refco’s futures business for more than 20 years.

The futures business under discussion includes Refco’s Refco LLC, Refco Overseas Ltd. and Refco Singapore units. It deals in exchange-traded futures and is regulated by the Washington-based Commodity Futures Trading Commission.