20 October 2017
visit www.avoka.com

Deutsche Börse still considering LSE merger

14 March 2005  |  6744 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)

Finextra news in your inbox

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

Related stories

LSE shares slip as Deutsche Börse pulls bid

LSE shares slip as Deutsche Börse pulls bid

07 March 2005  |  5204 views  |  0 comments
FSA and Liba tilt balance to Euronext in battle for London Stock Exchange

FSA and Liba tilt balance to Euronext in battle for London Stock Exchange

04 February 2005  |  6576 views  |  0 comments
Deutsche Börse outlines LSE takeover bid

Deutsche Börse outlines LSE takeover bid

27 January 2005  |  6889 views  |  0 comments
Rebel Deutsche shareholder calls for vote on LSE bid

Rebel Deutsche shareholder calls for vote on LSE bid

17 January 2005  |  5174 views  |  0 comments
London Stock Exchange confirms Euronext approach

London Stock Exchange confirms Euronext approach

20 December 2004  |  5236 views  |  0 comments
LSE rejects Deutsche Börse takeover bid

LSE rejects Deutsche Börse takeover bid

13 December 2004  |  6866 views  |  0 comments
LSE shares soar on bid speculation

LSE shares soar on bid speculation

11 November 2004  |  7200 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.innotribe.comRegister now

Who is commenting?

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
15963 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
9061 views comments | 16 tweets | 23 linkedin
satelliteGates Foundation backs Ripple collaboratio...
8203 views comments | 13 tweets | 10 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
7216 views comments | 9 tweets | 17 linkedin
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
6486 views comments | 17 tweets | 25 linkedin

Featured job

Competitive
London, UK (or flexible)

Find your next job