A market notice from the London Stock Exchange on Thursday reminded member firms of their settlement obligations under its rules, prompted by what it describes as “settlement delays in relation to transactions in New World Oil & Gas.”
The tiny Aim listed oil exploration group, you may remember, is the possible subject of a failure to read the small print short squeeze. Details on the strange situation below, but two things to conclude from the LSE’s statement: regulators are keeping a close eye on this one, but aren’t likely to step in and stop any squeeze. Read more
News from the London Stock Exchange, released in deepest August, that it had hired Sharon Bowles, former chairwoman of the European parliament’s economic and monetary affairs committee, as a noddie rather failed to generate much coverage or comment at the time.
But it hasn’t escaped the attention of Sven Giegold, a German green MEP. He’s fired off an angry missive. Read more
A table, in two parts. Click the images.
From the London Stock Exchange on Monday…
As part of a reorganisation of London Stock Exchange Group’s (“LSEG”) Italian legal entities earlier this year, a valuation report was prepared for the specific purposes of the reorganisation and was filed with the Companies Register of the Milan Chamber of Commerce and has recently been made public. This report included a LSEG revenue projection for the year ending 31st March 2016 of €1.4Bn with 12% annual LSEG revenue growth from the start of FY14. It also included 5 year (FY14 to FY18) financial projections for the Italian legal entities together with historic information for such entities for the 9 months to 31 December 2012.
It’s streaming from the LSE and is ostensibly about what economists and policymakers should take from the financial crisis. However, if we were cynical folk we’d suggest this makes a nice opportunity for Bernanke and King to get together, have some wine and go all Norman-Strong. Our eye’s on the ground tell us such luminaries as Carney and Yellen are also in attendance.
Anyway, enjoy, we know all the LSE alums here who made us post this will… Read more
So the LSE had a technical b0rk this morning, which clogged the Regulatory News Service out for more than 90 minutes. The silo of corporate news was finally released at 8:37am.
No harm done though, right? Market integrity intact? Possibly not. Read more
The London Stock Exchange is close to agreeing a takeover of LCH Clearnet, with an announcement possibly as early as Friday morning, the WSJ says. Talks between the two have been difficult and could still founder at a late stage. But the terms of a deal would likely value LCH Clearnet at $1.3bn, with LSE taking a more than 51 per cent stake in return for the opportunity to make a bigger play for the derivatives market.
Italy’s top financial regulator has cast doubt on the long-term success of the London Stock Exchange’s takeover of Borsa Italiana five years ago, reports the FT. Giuseppe Vegas, head of Consob, said “the merger of the LSE and Borsa Italiana could be a good thing but it has not yet demonstrated good effects”. There were not many capital flows between Italy and Britain, Mr Vegas added, apparently targeting his remarks at equity trading and the small-cap Aim Italia bourse. Borsa’s revenues are 30 per cent higher in absolute terms since the takeover, LSE said.
UralKali, the world’s largest potash producer by volume, is considering a premium listing on the London Stock Exchange (LSE) – in part to banish lingering concerns about its standards of corporate governance, the company’s chief executive tells the FT. Vladislav Baumgertner, who returned to the Russian company earlier this year as chief executive after it merged with its domestic rival Silvinit, said that UralKali was examining the idea with investors. Investors outside Russia can already invest in UralKali through Global Depositary Receipts, instruments that effectively allow foreign shares to trade on the LSE. But a premium listing – formerly called a primary listing – comes with more stringent supervision and reporting requirements.
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.
Breaking pre-market news on Friday,
- LSE confirms it’s bidding for a majority stake in LCH.Clearnet – FT, Bloomberg. Read more
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.”
TMX Group is in talks with the Canadian consortium whose hostile bid for the operator of the Toronto Stock Exchange scuppered a friendly combination with the London Stock Exchange, Canada’s Financial Post reports. “I’m given to understand that discussions are going on between TMX and the Maple Group,” Dwight Duncan, Ontario’s minister of finance, told the newspaper. Reuters says Mr Duncan had been a vocal critic of the LSE proposal. Like other opponents, he raised concerns over London gaining control over Canadian capital markets and the prospect of Toronto losing its status as a financial centre.
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.
Nasdaq is eyeing a bid approach for the London Stock Exchange following LSE’s failed merger with the Canadian bourse TMX, reports Fox Business. LSE shares jumped 3 per cent in European trading on Thursday, as investors calculate that it will become a bid target for Nasdaq, says the FT. Nasdaq stock rose 4.7 per cent on Wednesday, the largest daily gain since the exchange announced a joint bid with ICE for NYSE Euronext, Bloomberg reports. But the LSE’s biggest shareholders bought at the top of the market and may not be immediate sellers, FT Alphaville says, while LSE’s underlying business is improving, notes the FT Trading Room.
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.
A group of Canadian financial institutions have stepped up their fight against London Stock Exchange’s bid for TMX Group, launching a hostile C$3.7bn (US$3.8bn) bid for the operator of the Toronto and Montreal exchanges and ratcheting up its criticism of the UK group, writes the FT. Seeking to derail the agreed deal between the LSE and TMX, Luc Bertrand, an architect of the 13-member consortium known as Maple Acquisition, said the LSE proposal “makes promises but provides no clear growth strategy”.
At least three financial companies are planning to add their names to Maple Group’s $3.7 bn hostile bid for TMX Group, adding further weight to an all-Canadian rival to the London Stock Exchange’s friendly offer, reports Reuters. Desjardins Financial Group, GMP Capital Inc, Dundee Capital Markets could agree as early as Tuesday to join the consortium challenging the LSE’s $3.5 billion bid for the Toronto Stock Exchange operator, a source familiar with the situation told the news agency.
The Canadian consortium looking to upset the London Stock Exchange’s merger with TMX has moved to add up to four new members as the clock ticks on a takeover, the WSJ reports. Desjardins, GMP Capital, and Dundee Capital are among the financial services firms in talks on joining the Canadian banks and pension funds that form Maple Group. New members would improve Maple’s chances in the eyes of TMX shareholders — a fragmented group who remain uncertain whom to back in the contest, ahead of a vote on the LSE merger this month, Reuters says.
The Canadian banks and pension funds seeking to win control of the TMX Group of exchanges have taken their bid hostile, saying they will go directly to the company’s shareholders with a C$3.6bn offer, reports the FT. Last week, the board of TMX, owner of the Toronto and Montreal exchanges, rejected the bid from the so-called Maple group and endorsed its already agreed merger with the London Stock Exchange. Maple’s move to go hostile follows LSE-TMX bringing shareholder votes on the deal forward to June 30. TMX’s board cited antitrust and leverage concerns in its initial rejection of the Maple bid.
TMX Group, operator of Canada’s exchanges, has said its board opposes the C$3.6bn ($3.72bn) stock-and-cash offer by Maple, a Canadian consortium, and has reiterated support for its planned merger with the London Stock Exchange, reports the WSJ. TMX said at the weekend that its board had decided the takeover premium Maple is offering is “inadequate.” But Maple insisted on Friday that its offer was “clearly superior”, noting TMX’s stock price has “traded well above the implied value of the LSE” proposal. A Maple spokesman said the consortium was ‘confident’ it would obtain necessary shareholder and regulatory approvals and close by late autumn. Maple, composed of four of Canada’s largest banks and five pension funds, unveiled its cash-and-stock bid for TMX, valued at C$48 a share last weekend. TMX shares closed at C$44.06 on Friday. The FT reports that the LSE at the weekend also hit back at Maple, criticising the offer and signalling it will fight back.
Battle lines are being drawn in Canada between supporters and opponents of a C$3.6bn ($3.7bn) bid by nine domestic banks and pension funds for TMX Group, operator of the Toronto and Montreal stock exchanges, reports the FT. The bid consortium, Maple Group Acquisition, said on Sunday it would offer cash and shares valued at C$48 per TMX share, about 20% above the value of February’s all-share deal between TMX and the London Stock Exchange. Supporters see the Maple bid as a chance to create a Canadian “national champion” but critics say a TMX takeover will erode competition and exacerbate conflicts of interest. The banks already own Canada’s biggest securities firms as well as Alpha, an alternative trading platform that would be folded into TMX, and two-thirds of CDS, the main securities clearing house. Reuters says the Maple bid puts the LSE in a very “tight spot”.
A new crop of Russian companies will attempt to list in London at the start of next month in a further test of investors’ patience for Russian issuers, reports the FT. Nomos Bank, Russia’s second-largest private lender, is aiming to raise $700m in a joint London-Moscow offering next month that would value the company at up to $3.5bn. The company is to sell a 20% stake. Meanwhile, Euroset, the country’s largest mobile phone retailer, is also targeting an April London listing, which could value it at up to $1.5bn in a deal that will see oligarch Alexander Mamut sell down his controlling stake. Mamut, who has been quietly building up a 6% stake in HMV, the UK entertainment retailer, will decide whether to dispose of all or just part of his stake depending on what price the market is willing to pay for it, said a person close to the matter.
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.
The London and Toronto stock exchanges are preparing a bid for Nasdaq later this year, once their own $5bn tie-up is completed, according to Reuters citing the UK’s Sunday Times. LSE and TMX are currently preparing to confront regulatory objections to their merger and have not held talks with Nasdaq yet. Nevertheless the two bourses are keen to consolidate further following the alliance of Deutsce Boerse and NYSE Euronext. While that deal suggested that Nasdaq would be better off merging with CME Group, the bourse appears to be keeping its options open, if withdrawals from recent investor conferences are anything to go by, says the WSJ.
The London Stock Exchange is considering a takeover of US rival Nasdaq just weeks after announcing a merger with the Toronto stock exchange, reports Reuters, citing the Sunday Times. The companies have not held talks, but plan to make their move for a three-way tie-up later this year, the report said. Last month, the LSE agreed to merge with TMX Group, operator of the Toronto Stock Exchange, in a £3.1bn deal, among a flurry of exchange deals. The FT says the wave of consolidation has left Bob Greifeld, Nasdaq’s CEO with “little choice but to talk through his options” with bankers at Evercore Partners and BofA Merrill Lynch. One option he is exploring involves breaking up the Deutsche Börse and NYSE Euronext merger, although bankers see this as a long shot.