The London Stock Exchange is to consider lifting restrictions on shareholder limits, cited by OM as a hurdle to its hostile takeover bid. The move was announced by LSE chairman Don Cruickshank in a statement following the exchange's AGM.
Swedish technology group OM has asked LSE shareholders to call an extraordinary general meeting to vote on the removal of a 4.9% limit on individual stakeholding. The group says the restriction must be waived if its £900 million offer for the LSE is to succeed.
"We will not hide behind the 4.9% limit to thwart OM's bid," stated Cruickshank. "Your Board intends to convene a shareholder meeting in due course so that shareholders can decide for themselves, in respect of the OM offer, whether or not the 4.9% restriction should be lifted. Shareholders need not therefore return the EGM requisition form as requested by OM."