08 October 2015

Deutsche Börse still considering LSE merger

14 March 2005  |  6116 views  |  0 Deutsche Borse

Deutsche Börse has asked UK and German regulators to continue to examine its bid to buy the London Stock Exchange (LSE), despite dropping its £1.35bn proposal for the UK market operator last week.

The Frankfurt-based exchange withdrew its preliminary cash offer of 530 pence per share after failing to gain a recommendation for the proposal from the LSE. The Börse had also faced increasing opposition to its takeover plan for LSE from its shareholders who called for the exchange to drop the plan and buy back its own shares instead.

But the German exchange left the door open for a new bid for for the LSE, if its Paris-based rival Euronext or another third party makes an offer.

In today's statement, the German exchange says it has left its financing commitments in place and has asked the UK Office of Fair Trading and the German Federal Cartel Office to continue with the merger control investigation. But the Börse will only submit a bid if another third party were to disclose an offer for the UK exchange.

The Börse withdrawal last week left Pan-European exchange operator Euronext as the favourite to take over the London exchange. But according to press reports, Euronext now faces its own shareholder revolt to its plans to buy the LSE.

Christopher Hohn, managing partner of The Children's Investment Fund (TCI) - a London-based hedge fund which led the opposition for Deutsche Börse's bid for LSE - told reporters that the largest shareholders in the Paris-based Euronext group opposed it making an offer "materially above" 400 pence per LSE share.

TCI currently holds over five per cent of Deutsche Börse and is thought to hold between three and four per cent in Euronext.

According to a report in the FT, The London Stock Exchange will not consider any bid below 590 pence and 600 pence a share, raising the prospect that it could retain its independence.

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

07 March, 2005
04 February, 2005
27 January, 2005
17 January, 2005
20 December, 2004
13 December, 2004
11 November, 2004

Related company news


Top topics

Most viewed Most shared
BNP Paribas to pilot cards with dynamic CV...
7165 views comments | 32 tweets | 37 linkedin
European Parliament rubberstamps Payment S...
5296 views comments | 29 tweets | 32 linkedin
Faster Payments eases access for challenge...
4845 views comments | 20 tweets | 25 linkedin
Retail security bashing lobby group ABA ad...
4447 views comments | 16 tweets | 8 linkedin
Santander InnoVentures joins Ripple fundin...
4214 views comments | 29 tweets | 17 linkedin

Featured job

to $120K base, double OTE, benefits
New York City, NY or Boston, MA (USA)

Find your next job