OM fails to win over LSE shareholders

OM fails to win over LSE shareholders

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)

Featured Job
All Jobs »