17 August 2017
Find out more

OM fails to win over LSE shareholders

10 November 2000  |  4676 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  |  3878 views  |  0 comments
LSE issues third defence against OM bid

LSE issues third defence against OM bid

19 October 2000  |  4333 views  |  0 comments
LSE scorns "inadequate" OM bid

LSE scorns "inadequate" OM bid

25 September 2000  |  4485 views  |  0 comments
LSE chief executive Casey quits

LSE chief executive Casey quits

18 September 2000  |  3792 views  |  0 comments
LSE abandons iX merger deal

LSE abandons iX merger deal

13 September 2000  |  4991 views  |  0 comments
OM tables formal offer for LSE

OM tables formal offer for LSE

12 September 2000  |  4594 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
download the paper nowvisit www.dorsum.euvisit www.worldpaymentsreport.com

Top topics

Most viewed Most shared
Coinbase raises $100mCoinbase raises $100m
10432 views comments | 14 tweets | 14 linkedin
DBS Bank launches online car selling marketplaceDBS Bank launches online car selling marke...
9829 views comments | 13 tweets | 11 linkedin
China preps central clearing house for mobile payments providersChina preps central clearing house for mob...
9746 views comments | 8 tweets | 15 linkedin
Monzo appoints Curve co-founder Foster-Carter COOMonzo appoints Curve co-founder Foster-Car...
8141 views comments | 1 tweets | 3 linkedin
hands typing furiouslyCompliance: Overcome the data deficit
7617 views 0 | 1 tweets | 8 linkedin

Featured job

Find your next job