22 September 2017
Find out more

Icap consortium makes EUR830m LCH.Clearnet bid - FT

11 May 2009  |  8794 views  |  0 Parliament Big ben London

A consortium of 11 banks and interdealer broker Icap has launched an EUR830 million bid for LCH.Clearnet just weeks after the Depository Trust and Clearing Corporation called off its pursuit of the London clearing house, according to the Financial Times.

The group - which already holds over 15% of the voting rights - is understood to have submitted a EUR11 per share cash offer for 73.93 million shares on Friday.

Although LCH.Clearnet has yet to comment publicly on the bid, the FT says "people familiar with management's thinking" consider it "underwhelming".

The DTCC pulled out of a EUR10 per share deal last month after failing to reach agreement over the proposed transatlantic merger, leaving the way clear for the Icap-led consortium, which includes Barclays, Citi, Deutsche Bank, HSBC Holdings, JPMorgan Chase, Nomura Holdings, Morgan Stanley, Royal Bank of Scotland, Societe Generale and UBS.

However, the clearer is reportedly still considering buying out its 123 shareholders and converting into a user-owned utility in a bid to scuttle the consortium. After the conversion, LCH.Clearnet would invite shareholders to buy back in, making use of the clearer conditional on being a shareholder.

The once-moribund European clearing business has been shaken up by the arrival of a new wave of pan-European exchange-based trading platforms and the financial crisis, which has seen regulators pushing for more OTC clearing.

This month LCH.Clearnet outlined plans to slash its fees by a third and agreed new competitive clearing offerings for European MTFs Bats Europe, Chi-X, Turquoise and Nyse Arca Europe.

Banks and Icap launch €830 bid for LCH.Clearnet - FT

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

LCH.Clearnet agrees competitive clearing deals

LCH.Clearnet agrees competitive clearing deals

07 May 2009  |  13626 views  |  0 comments
LCH.Clearnet slashes clearing costs

LCH.Clearnet slashes clearing costs

01 May 2009  |  8447 views  |  0 comments
DTCC calls off LCH.Clearnet merger

DTCC calls off LCH.Clearnet merger

29 April 2009  |  11107 views  |  0 comments
LSE pulls out of LCH.Clearnet consortium

LSE pulls out of LCH.Clearnet consortium

13 March 2009  |  8557 views  |  0 comments
LCH.Clearnet to open New York office

LCH.Clearnet to open New York office

11 March 2009  |  6884 views  |  0 comments
LCH.Clearnet mulls buying out investors - FT

LCH.Clearnet mulls buying out investors - FT

05 March 2009  |  5780 views  |  0 comments
LSE revealed as core member of LCH.Clearnet bid consortium

LSE revealed as core member of LCH.Clearnet bid consortium

20 February 2009  |  6831 views  |  0 comments
HSBC and JPMorgan join SwapClear; DTCC hits back at LCH.Clearnet critics

HSBC and JPMorgan join SwapClear; DTCC hits back at LCH.Clearnet critics

03 February 2009  |  9157 views  |  0 comments
Icap-led consortium preps counter-bid for LCH.Clearnet

Icap-led consortium preps counter-bid for LCH.Clearnet

02 February 2009  |  6619 views  |  0 comments
DTCC and LCH.Clearnet propose merger

DTCC and LCH.Clearnet propose merger

22 October 2008  |  9622 views  |  0 comments

Related company news

 

Related company information

JPMorgan Chase

Related blogs

Create a blog about this story (membership required)
visit www.temenos.comdownload the paper nowvisit www.vasco.com

Top topics

Most viewed Most shared
HSBC switches on selfie payments in ChinaHSBC switches on selfie payments in China
12470 views comments | 26 tweets | 42 linkedin
Equifax hack: Visa and Mastercard flag 200k compromised credit cardsEquifax hack: Visa and Mastercard flag 200...
10949 views comments | 6 tweets | 17 linkedin
Dutch bank sentences teenage DDoS culprit to community serviceDutch bank sentences teenage DDoS culprit...
9525 views comments | 6 tweets | 3 linkedin
Apple P2P payments service nears launchApple P2P payments service nears launch
8145 views comments | 18 tweets | 26 linkedin
UAE banks pool cyber security dataUAE banks pool cyber security data
8110 views comments | 5 tweets | 4 linkedin

Featured job

Competitive base, double ote, benefits
London, UK

Find your next job