£1.5bn hostile bid for LSE
Australian bank Macquarie went hostile today with its takeover campaign for the London Stock Exchange by tabling an offer worth £1.5 billion.
Macquarie said its 580p-a-share offer represented "attractive value" for the LSE because the value of the exchange had been inflated by the bid speculation.
The price has previously been rejected by the LSE board as too low, but Macquarie said its decision to go hostile was taken after holding talks with shareholders of the exchange.
Macquarie, which has completed its examination of the LSE's books, did not expect its offer to cause any major competition concerns.
This is in contrast to previous takeover proposals from pan-European exchange Euronext and German rival Deutsche Boerse, which were conditionally cleared by the Competition Commission after an inquiry.
Macquarie, which has established MLX as its bid vehicle, said the LSE would continue to have its headquarters and be managed in London.
It assured customers that they would continue to be represented on the LSE board and it had no intention of introducing major hikes in prices for broker or information services.
Jim Craig, director of MLX and head of Macquarie Europe, said the offer was a full price even though the LSE board described it last week as "derisory".
He said: "What we've heard from shareholders is that a cash offer is an attractive thing, so based on those discussions we have had the encouragement to proceed."
Shares in the London Stock Exchange changed hands at 618p today as investors took the view that Macquarie would have to sweeten its bid to win control or Euronext may weigh in with a formal offer.
However, Mr Craig would not be drawn on whether the bank would be prepared to raise its bid if it failed to win the backing of shareholders.
Concerns among investors about potential corporate governance issues led Macquarie to commit itself to ensuring that the LSE board will continue to have a majority of independent non-executive directors if it takes over.
- 1 Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
- 2 Frank Lampard's face drops when Holly Willoughby introduces him as a 'Man City legend'
- 3 UK weather: Britain braced for snow as arctic air mass moves in
- 5 General Election 2015: Stephen Hawking says he will vote Labour
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Aaron and Melissa Klein: Oregon anti-gay bakers ordered to pay $135,000 after refusing to make cake for same-sex wedding
Andrew Lloyd Webber: Phantom of the Opera writer mocked after issuing a warning about Ed Miliband and Nicola Sturgeon
General election 2015: Labour will toughen hate crimes legislation surrounding Islamophobia
HSBC review into moving headquarters from UK 'underway'
iJobs Money & Business
£20000 - £60000 per annum: Recruitment Genius: Are you recently QCA Level 4 qu...
£20000 - £22500 per annum + OTE £30K: SThree: SThree Group have been well esta...
£25 - 30k: Guru Careers: We are seeking an Application Support Analyst / 1st L...
£45K - £55K (DOE) + Benefits: Guru Careers: We are seeking a full stack .NET D...