The FTSE index people at the LSE on Tuesday published their annual review of country classifications. There were no actual movements between the categories — Developed, Advanced Emerging, Secondary Emerging and Frontier — although two countries have joined the FTSE watch list:
Ukraine has been thrown off the list completely and is no longer being considered as a possible Frontier entrant. Too many problems with regulatory oversight and capital controls, it seems. Read more
After a day of roiling rumours, James Quinn and Ben Harrington at the Telegraph told us on Thursday that Singapore Exchange is in
merger takeover talks with the London Stock Exchange.
While the tale includes the usual escape chutes (“banking sources indicated that any form of formal offer is still some time away,” etc) the idea has a clear ring of truth to it. Maybe. The talks are said to have grown out of discussions on the large cap cross-trading agreement between London and Singapore, unveiled just a week ago. Read more
A few years back, the FSA warned banks to be careful about their choice of code words in M&A deals:
Use appropriate code names to disguise the identities of relevant parties. This only works if the code names are sufficiently different from the names of the relevant parties so their real identities cannot be determined. Read more
Breaking pre-market news on Monday,
- Pearson sells 50 per cent stake in FTSE to the London Stock Exchange for £450m — statement and statement. Read more
Sadly, the London Stock Exchange’s plan to fix the broken UK IPO market is unlikely to work for the simple reason that it doesn’t really believe there’s a problem. Read more
As expected the star of the show in Wednesday’s half year figures from the London Stock Exchange was its Italian clearing business.
Income was up 225 per cent on a year ago, as the LSE sweated the margin posted by clients of Cassa di Compensazione e Garanzia (CCG). By that, we mean the LSE parked the cash (around €5bn) with Italian banks, who are desperate for overnight deposits. Read more
Breaking pre-market news on Wednesday,
- LSE says income from its Italian clearing business up 225 per cent from a year ago — statement. Read more
What’s one of the fastest growing parts of the London stock exchange?
Answer: its Italian clearing house business. According to Goldman Sachs income from this operation has grown four-fold in only 15 months and it now accounts for as much as a third of group earnings. Read more
The story so far.
Last week, FTSE Group launched a consultation on the free float rules for its various indices. That followed an outcry from investors concerned about the wave of overseas companies seeking to list on the main market while keeping control out of public hands. Read more
The London Stock Exchange has succeeded in its attempt to take over LCH.Clearnet after the clearer’s board favoured the UK bourse over Markit, the rival bidder, the FT reports. LCH.Clearnet’s 21-member board, which met on Monday, approved the LSE’s offer of up to €21 a share for 51 per cent of the clearer, which is one of the most prized assets in the clearing business.The deal, which must still be approved by LCH’s 98 shareholders, marks a coup for Xavier Rolet, the chief executive of the LSE who took over from Dame Clara Furse in 2009. It comes after he failed this summer to clinch a merger with TMX Group, operator of Canada’s exchanges. The LSE and LCH.Clearnet declined to comment.
The London Stock Exchange has made a bid for a majority stake in LCH.Clearnet, raising the stakes in the battle for control of Europe’s last remaining independent clearing house and valuing the company at about €1bn ($1.4bn), reports the FT. The move pits the LSE against Markit, a UK post-trade services group, for control of LCH.Clearnet, one of the most prized assets in the business of clearing equities and over-the-counter derivatives. It also comes as new regulations on derivatives emerging from Brussels and the prospect of a merger of Deutsche Börse and NYSE Euronext are casting a cloud over the UK’s key market infrastructure operators – the LSE and LCH.Clearnet.
London’s position as a global financial centre is under threat from the proposed merger of Deutsche Börse and NYSE Euronext as key investment decisions affecting the group’s UK businesses may shift abroad, the chief executive of the London Stock Exchange, Xavier Rolet, has warned. “There’s definitely a medium- to long-term threat which we believe is not completely understood here in the UK,” Mr Rolet told the FT. Mr Rolet added that the UK was under-represented in Europe, reducing its ability to fight its case amid sweeping reform of the financial sector. “In terms of the prudential regulations, of credit, insurance, financial stability, there is a European framework where the UK has a voice but not a voice which is in keeping with the size that London and the UK represents.”
The London Stock Exchange would be open to considering a merger of equals with Nasdaq OMX in the first sign that the British bourse could yet turn its attention to securing its future in another big merger after its attempted tie-up with Canada’s TMX Group collapsed, the FT says. Nasdaq’s chief executive, Bob Greifeld, is considering an approach for the LSE but people familiar with the matter said advisers were not yet formally involved. Nor had Mr Greifeld spoken with his counterpart at the LSE, Xavier Rolet. However, the prospect of the combination revives the vision of a transatlantic exchange powerhouse first pushed by Mr Greifeld five years ago when he made a failed bid for the LSE.
The London Stock Exchange would be open to considering a merger of equals with Nasdaq OMX, the FT reports, in the first sign that the British bourse could yet turn its attention to securing its future in another big merger after its attempted tie-up with Canada’s TMX Group collapsed. Nasdaq’s chief executive, Bob Greifeld, is considering an approach for the LSE but people familiar with the matter said advisers were not yet formally involved. Nor had Mr Greifeld spoken with his counterpart at the LSE, Xavier Rolet. The prospect of the combination revives the vision of a transatlantic exchange powerhouse first pushed by Mr Greifeld five years ago when he made a failed bid for the LSE.
Required: another corporate mercy killing.
The target? Read more
The London Stock Exchange’s hopes of securing its future as part of a transatlantic deal with TMX Group evaporated on Wednesday night after the UK bourse withdrew its merger plan having failed to secure enough support from shareholders of its Canadian peer, the FT reports. The withdrawal is a serious setback to Xavier Rolet, the French chief executive of the LSE, and might put the exchange in play as a potential bid target. Also in the FT: the collapse of TMX’s deal with the London Stock Exchange improves the chances – but by no means guarantees – that a rival consortium of domestic banks and pension funds will gain control over the Canadian exchange group. The 13-member Maple group expressed the hope on Wednesday that it “may now engage in a positive dialogue with the TMX board”. However, the Maple bid still requires approval not only of TSE shareholders but, more important, of the federal competition bureau.
The London Stock Exchange’s hopes of securing its future as part of a transatlantic deal with TMX Group evaporated last night after the UK bourse withdrew its merger plan having failed to secure enough support from shareholders of its Canadian peer, the FT reports. The withdrawal is a serious setback to Xavier Rolet, the French chief executive of the LSE, and might put the exchange in play as a potential bid target. The LSE’s share price has risen by 15 per cent since mid-May amid speculation that it might be taken over, with Nasdaq OMX of the US topping the list of potential predators. The LSE and TMX had both been waiting for their shareholders to vote on Thursday on whether to support the LSE’s proposed “merger of equals” with TMX, or side with a bid from a consortium of Canadian banks and pension funds. But the LSE said: “Based on proxy information received in Canada by TMX Group, a majority of TMX Group shareholder proxies have voted in favour of the merger.
It’s the UK, which has just over taken Japan according to Citigroup.
The London Stock Exchange and Canada’s TMX Group have sweetened their merger proposal with a special dividend in a drive to win shareholder support against a rival bid by a group of Canadian financial institutions, reports the FT. The two exchange groups said the dividend – totalling 84.1p per share for existing LSE shareholders and C$4 per share for TMX shareholders – demonstrated the “financial strength and flexibility” of the proposed combined group. The dividend adds a cash element to the LSE-TMX offer, bringing it to a total value of C$49 per TMX share. The rival Maple Acquisition group, comprising 13 banks, pension funds and securities dealers, has offered cash and shares worth C$48. LSE and TMX shareholders are due to vote on the proposal on June 30. The deal requires a two-thirds majority among TMX shareholders. Maple had no immediate comment on the special dividend. It has urged TMX shareholders to vote against the LSE deal next week.
Breaking pre-market news on Monday,
- Glencore said to lift IPO price range to 520-550p a share – Reuters. Read more
Topaz Energy & Marine, Russian Helicopters, Edwards Group, Skrill and Chelpipe.
Just some of the companies that have pulled or postponed plans to list on the London Stock Exchange. Read more
Breaking pre-market news on Friday,
- London Stock Exchange says annual profits up 22 per cent; files TMX merger application – statement and statement. Read more
Two questions: Why? And how much did it cost?
Press release from the London Stock Exchange: Read more
Canada’s banks are split on whether to support the proposed tie-up of the London and Toronto stock exchanges, the FT reports. Four of the country’s six biggest banks – Toronto-Dominion, Bank of Nova Scotia, Canadian Imperial Bank of Commerce and National Bank – are working on a public statement expressing doubts about the deal, although Royal Bank of Canada and Bank of Montreal will support it. Several banks are shareholders in an alternative trading system that competes with the Toronto exchange, and may propose for it to be merged with TMX instead. In any case, the banks’ opposition shows that LSE-TMX is generating far more resistance than first thought.
Technologically speaking all is still not well at the London Stock Exchange, reports FT Alphaville. Prices were being disseminated on Monday morning but anyone trying to enter the LSE website via Google was getting hit with a “reported attack” message. Still, the LSE is not the only exchange with a red face this morning. The Australian Stock Exchange, which like the LSE is merging with a rival, has also suffered an outage. Quotes on Nasdaq’s OMX Nordic exchanges were also failing to update. While this is probably nothing more than coincidence (and note the ASX did install a patch over the weekend), it does make one wonder if there’s something in these industrial sabotage theories. Read more
The London Stock Exchange has (finally) broken its silence on those migration issues. And surprise, surprise they are not to blame.
The London Stock Exchange’s UK cash markets successfully migrated to the Group’s new ultra-low latency trading platform, Millennium Exchange on Monday this week. Read more
Click to enlarge (image via a friendly source):
Shares in London Stock Exchange surged almost 8 per cent on Wednesday after it agreed an all-share merger with TMX Group, operator of Canada’s largest stock exchange, creating a platform with the world’s largest number of mining company listings at a time of surging commodity prices, the FT says. The deal is the first big strategic move by Xavier Rolet, the CEO who took over from Clara Furse in 2009, to secure the future of the UK bourse. The Guardian adds that the deal is being billed as a merger of equals, but LSE shareholders will own 55 per cent of the combined group.