EU: London Stock Exchange, Deutsche Boerse try again to create European champion

Deutsche Boerse and the London Stock Exchange are taking a fresh run at a merger that would create a large European exchange operator potentially capable of facing down strong competition from the United States and Asia.

The LSE said on Tuesday it was in detailed discussions with its German rival about an all-share merger. Under the proposed structure, the balance of ownership favours Frankfurt, with Deutsche Börse shareholders owning 54.4% of the combined company and LSE shareholders holding 45.6%.

The UK exchange said: “The boards believe that the potential merger would represent a compelling opportunity for both companies to strengthen each other in an industry-defining combination, creating a leading European-based global markets infrastructure group.”

The exchanges have considered combining forces before. They agreed to merge in 2000 before a rival bid for the LSE from Sweden’s OM Gruppen scuppered the deal, which was then rejected anyway. The LSE then rejected a formal £1.3bn offer from Deutsche Börse in January 2005.

Full content: The Telegraph

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