Jeremy Warner's Outlook: LSE snubbed over Qatari exchange
Wednesday 25 June 2008
Left at the altar again? Clara Furse's seeming inability to pull off a deal is actually more apparent than real – in fact, the London Stock Exchange last year sealed a perfectly good merger with Borsa Italiana.
Yet the shares have been in virtual freefall all this year on fears over the damage new entrants might do to the bottom line, and now, to give more ammunition to her critics, Dame Clara has been outmanoeuvred by one of her fiercest rivals, NYSE Euronext, for the contract to set up a new stock market in the boom economy of Qatar.
The loss of this deal is all the more humbling as Qatar is a 15 per cent shareholder in the LSE, and would presumably have been leaning over backwards to favour the company in which it has such a large investment. In the end, NYSE's $250m equity participation, in conjunction with its ability to offer futures and derivatives trading, sealed it for the Qataris.
Dame Clara claims there are lots of better, lower-risk opportunities in the region and elsewhere that are being actively pursued. The Doha deal, by contrast, carries considerable investment risk, since the proposed exchange is essentially just a start-up. Yet the impression remains that the LSE is being progressively frozen out both at home and abroad. The dangers of ending up just a regional tiddler against global giants is all too evident in the fast-shrinking share price.
- 3 How the language you speak changes your view of the world
- 4 Russell Brand backs Ed Miliband: 'You gotta vote Labour'
Lucy Hawking: Stephen Hawking's daughter writes impassioned open letter to Katie Hopkins about rights of disabled people
Indonesia executions: Death row British grandmother Lindsay Sandiford will refuse to wear a blindfold when she faces firing squad
Oxygen-starved 'dead zones' with no marine life up to 100-miles long discovered in the Atlantic Ocean
Russian warships accused of 'chasing away' Swedish vessel to prevent Baltic States from achieving energy independence
How the language you speak changes your view of the world
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: SNP and its activists 'openly racist' towards the English, Farage says
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
Schools forced to act as 'miniature welfare states' with teachers buying underwear and even haircuts for poor pupils
iJobs Money & Business
£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...
£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...
£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...
£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...