24 February 2018
visit www.ebaday.com

Nyse Euronext sells MTS stake to Borsa Italiana

03 August 2007  |  9424 views  |  0 globe

Nyse Euronext has agreed to sell its stake in MBE Holding, the joint venture company that owns the MTS fixed income network, to Borsa Italiana for EUR100 million.

MBE Holding - a joint venture established by Euronext and Borsa Italiana - owns 60.37% of MTS and index provider MTSNext.

Under the terms of the agreement, Nyse Euronext's 51% stake in MBE Holding and 33% stake in MTSNext are valued at EUR100 million.

Borsa Italiana, which is in the process of being acquired by the London Stock Exchange (LSE), exercised an option to buy out Euronext's stake in MBE Holding, which was triggered by the merger of Nyse and Euronext last year.

The transaction is expected to close by mid-September 2007 after which Borsa Italiana becomes the sole shareholder of the company.

"With this acquisition, Borsa Italiana aims to increase its presence in wholesale bond trading and to enhance the value of MTS' business," says the Italian market operator in statement.

News of the sale follows earlier reports that London-based interdealer broker Icap was looking to buy the electronic MTS platform from LSE and Borsa Italiana and had appointed Lexicon Partners to advise it on a bid.

Icap's chief executive, Michael Spencer, told Financial Times reporters that Icap was far better equipped than the LSE to run the bond platform because it already had extensive similar, global electronic operations.

He also argued that an acquisition of MTS by Icap would "bring about the globalisation of the eurozone government bond market for the first time ever".

However the LSE is thought to have no plans to sell the bond trading platform, as one of its primary reasons for pursuing a merger with Borsa Italiana is to create a more diversified business and shift away from reliance on equity trading.

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

Citi bond traders indicted over 'Dr Evil' trade

Citi bond traders indicted over 'Dr Evil' trade

19 July 2007  |  17701 views  |  0 comments
LSE outlines EUR1.6 Borsa Italiana bid; Icap eyes MTS prize

LSE outlines EUR1.6 Borsa Italiana bid; Icap eyes MTS prize

25 June 2007  |  8855 views  |  0 comments
MTS gives guarded welcome to hedge funds

MTS gives guarded welcome to hedge funds

20 April 2007  |  5958 views  |  0 comments
Hedge funds eye MTS platform

Hedge funds eye MTS platform

27 February 2007  |  7428 views  |  0 comments
Goldman quits MTS platform

Goldman quits MTS platform

25 January 2007  |  12255 views  |  0 comments
European regulations stifle bond markets, says study

European regulations stifle bond markets, says study

30 November 2006  |  8646 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit www.vasco.comvisit www.ebaday.comVisit http://info.nice.com

Top topics

Most viewed Most shared
Ripple makes new connections to emerging marketsRipple makes new connections to emerging m...
11717 views comments | 16 tweets | 10 linkedin
hands typing furiouslySome Interesting Applications Of The Inter...
10304 views 3 | 9 tweets | 1 linkedin
Basel Committee outlines disruptive fintech scenariosBasel Committee outlines disruptive fintec...
8492 views comments | 15 tweets | 26 linkedin
Investment Association sets up fintech accelerator for asset managersInvestment Association sets up fintech acc...
8030 views comments | 19 tweets | 10 linkedin
R3 creates Legal Centre of Excellence for blockchain technolgyR3 creates Legal Centre of Excellence for...
7726 views comments | 10 tweets | 14 linkedin

Featured job

Competitive base + commission + benefits
UK or Germany

Find your next job