LSE and OMX merger deal would save £100 million, cost 130 jobs - Dagens Industri
29 November 2005 | 7660 views | 0
The London Stock Exchange is in talks with Scandinavian stock exchange operator OMX about a deal under which its technology division would be moved to Stockholm, leading to the loss of 130 jobs from across the two exchanges, according to a report by Swedish newspaper Dagens Industri.
Under the deal, all equity transactions for the Stockholm, Helsinki, and Copenhagen exchanges - which are all operated by OMX - would be routed through the LSE.
According to the report, the deal would generate synergies of around £100 million a year but would lead to the loss of 130 tech, admin and managerial jobs from across the two exchanges, leaving the combined group with around 800 employees.
Neither exchange has commented on the speculation.
According to a report in UK broadsheet the Sunday Telegraph, the LSE has suspended talks with OMX in order to focus on fighting off a possible takeover bid from Australia's Macquarie Bank.
The Australian investment bank has until 15 December to make a formal takeover bid for the UK exchange. Macquarie is reportedly meeting with some of the LSE's largest users in an effort to generate support for its proposals.