LSE pulls out of LCH.Clearnet consortium

LSE pulls out of LCH.Clearnet consortium

The London Stock Exchange has pulled out of a consortium of banks led by inter-dealer broker Icap that is considering a takeover bid for LCH.Clearnet. The independent clearer says it has had extensive talks with the consortium but that it is still awaiting an offer.

The LSE had expressed an interest in the fate of LCH.Clearnet, but had neither confirmed or denied that it would take part in any potential bid.

The Icap-led collective was expected to tender an indicative offer earlier this week ahead of an LCH.Clearnet board meeting, but has so far failed to show its hand.

Speaking to a Reuters reporter at the Futures Industry Association conference in Boca Raton, Florida, LCH.Clearnet chief Roger Liddell, confirmed the talks but said no offer had been made. "We've been providing a lot of information. They've been doing a huge amount of due diligence, but we've had no offer," Liddell said.

Liddell also confirmed that the clearer was re-evaluating an earlier agreed merger pact with the US-based Depository Trust and Clearing Corporation.

"We're in a considerably changing landscape and reevaluating the situation. It's a very lengthy, complicated legal process and none of this is simple," he told Reuters.

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