23 October 2017
Register now

OM fails to win over LSE shareholders

10 November 2000  |  4712 views  |  0 stock exchange prices

Swedish technology company OM Gruppen has failed in its hostile bid for the London Stock Exchange.

With the deadline for its offer lapsing at 1.00pm Friday 10 November, Om managed to secure only 6.7 per cent acceptances for its £1 billion-plus bid for the LSE.

Commenting, Per Larsson, president and chief executive officer of OM, says: "We believe that, by rejecting OM's offer, LSE has now simply deferred addressing the problems it faces. OM's bid was about bringing clarity to LSE's management, structure and strategy, as well as offering full value to shareholders. The feedback received from shareholders on our roadshow and in one-on-one meetings strongly endorsed this initiative."

He says that stock exchanges in the future will have to compete for liquidity. "Their success will be determined by their operational efficiency, brand strength, technological superiority and their ability to provide value added services to customers. A clear separation of ownership and membership will be essential. In this light, LSE's future remains unclear and its strategy opaque."

Larrson adds that OM may revive its offer if the LSE enters merger or takeover talks with other bidders in the near future.

Don Cruickshank, chairman of the London Stock Exchange, welcomed the news: "I am pleased that the distraction of OM's offer is over. We are getting on with building the business from its strong foundations and implementing our strategy in full consultation with our shareholders and customers."

He says the LSE will announce the formation of an Exchange Markets Group within the next few weeks. The EMG will form the core of the London Stock Exchange's new formal consultation process. The membership of the EMG, comprising approximately 30, will be drawn broadly from the market as a whole, including retail brokers, investment banks, corporate advisers, investing institutions and other key groups. The Group will meet at least six times a year, says Cruickshank.

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

OM Gruppen extends LSE bid deadline

OM Gruppen extends LSE bid deadline

27 October 2000  |  3927 views  |  0 comments
LSE issues third defence against OM bid

LSE issues third defence against OM bid

19 October 2000  |  4376 views  |  0 comments
LSE scorns "inadequate" OM bid

LSE scorns "inadequate" OM bid

25 September 2000  |  4547 views  |  0 comments
LSE chief executive Casey quits

LSE chief executive Casey quits

18 September 2000  |  3847 views  |  0 comments
LSE abandons iX merger deal

LSE abandons iX merger deal

13 September 2000  |  5042 views  |  0 comments
OM tables formal offer for LSE

OM tables formal offer for LSE

12 September 2000  |  4642 views  |  0 comments

Related company news


Related blogs

Create a blog about this story (membership required)
visit www.atos.net visit www.vasco.com

Top topics

Most viewed Most shared
Mastercard to roll out blockchain APIMastercard to roll out blockchain API
19707 views comments | 31 tweets | 43 linkedin
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
15268 views comments | 23 tweets | 32 linkedin
Sibos 2017: API or the highwaySibos 2017: API or the highway
11016 views comments | 12 tweets | 23 linkedin
Eight banks form joint venture to launch blockchain trade platformEight banks form joint venture to launch b...
9118 views comments | 15 tweets | 29 linkedin

Featured job

London, UK (or flexible)

Find your next job