LSE shareholders vote in favour of Borsa Italiana merger

LSE shareholders vote in favour of Borsa Italiana merger

Shareholders in the London Stock Exchange have overwhelmingly approved its proposed £1.1 billion merger with Borsa Italiana, paving the way for the entry of the enlarged group into the FTSE100 index when the formalities are completed in October.

The resolution in favour of the merger was passed in a near unanimous show of hands by shareholders representing 78% of the LSE's issued share capital at an EGM in London this morning.

Earlier in the day, Borsa Italiana's shareholders approved changes to the Italian exchange's articles of association that will enable the completion of the transaction. This follows the acceptance of the offer by 99.92% of Borsa Italiana's shareholders last week.

The vote in favour comes as the LSE reports strong growth in electronic trading in its latest monthly reporting figures, with a total of 12.1 million trades carried out on SETS during July, an increase of 96% on July 2006. The value traded increased by 77% to £191.1 billion.

The Exchange has also been boosted by recent news of a delay to the scheduled November launch of Project Turquoise, a rival system being established by investment banks that will not now be ready until the second quarter of 2008.

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