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EU: LSE shareholders overwhelmingly back Deutsche merger

 |  July 4, 2016

The London Stock Exchange has won support from its investors to proceed with its £20bn merger with Deutsche Boerse, despite concerns that the firm is “shackling itself to a corpse” inside the European Union.

An overwhelming 99.89pc of voting shareholders supported the deal going ahead, far above the 75pc threshold required. Having cleared this hurdle with LSE investors, the two companies have until July 12 to amass support among Deutsche Boerse’s shareholders, before working to win approval from several dozen competition authorities around the world.

At the meeting in central London, one LSE shareholder asked whether “we are sure we want to shackle ourselves to a corpse” inside the EU, noting the French president Francois Hollande’s recent call for euro clearing to move from London to inside the eurozone.

“I don’t think that’s what we’re doing at all,” said Donald Brydon, the chairman of the LSE. “But it really behoves everyone at the moment to remember we are still in the EU and will be for the next two years at least. In that time we have the opportunity to work out the optimal structure.”

Full Content: Financial Times

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