Has the London Stock Exchange, under chief executive Clara Firse, finally done a deal – even if it’s something of a tiddler in terms of global exchange consolidation?
A report on La Tribune’s website on Wednesday said the LSE and Milan stock exchange operator Borsa Italiana are about to sign a memorandum of understanding, with a view to merging later in the summer. Reuters added later that the deal “would recognise London’s greater weight but leave some autonomy to Milan.”
A formal statement duly popped out of the LSE confirming the talks.
The Italians have been under increasing pressure to do something pro-active. Bank of Italy governor Mario Draghi, speaking at his bank’s annual meeting at the end of May, declared: “In a rapidly evolving international context, the strategies that Borsa Italiana intends to pursue remain to be defined; its shareholders need to provide clarification.”
Borsa Italiana had, of course, been flirting with both Euronext and Deutsche Borse before the Euronext-NYSE tie-up put an end to talks.
But what’s this? Dow Jones was simultaneously reporting on Wednesday that Borsa Italiana has received a merger offer from the New York Stock Exchange. Is/was this a spoiling tactic from the Americans? Or has Clara just rushed the LSE’s hand to keep her rivals at bay?
We await clarification.