Crestco rejects suitor

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The Independent Online

Crestco, the securities settlement business which has an almost identical ownership structure to the London Stock Exchange, has rebuffed a European merger offer.

Crestco, the securities settlement business which has an almost identical ownership structure to the London Stock Exchange, has rebuffed a European merger offer.

Clearstream International is Europe's largest settlement company and recently took over Deutsche Börse Clearing. It made the offer last month after the merger between the London Stock Exchange and the Deutsche Börse collapsed.

Originally, CrestCo and Clearstream were going to link to aid the merger between the exchanges. This was dropped when the merger failed.

André Lussi, chairman of Clearstream, said he saw value in creating one European securities settlement company to save costs. But a spokesman for CrestCo said it had more up-to-date systems than Clearstream and was more efficient, so a merger would not be beneficial.

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