OOpps . not suspended (could have sworn I read that somewhere)
Deutsche Börse timed LSE bid to exploit EU vote uncertainty - FT.com
Deutsche Börse deliberately launched its bid for the
London Stock Exchange Group amid the political uncertainty surrounding Britain’s “Brexit” vote in order to steal a march on US rivals.
Some commentators have expressed surprise at the timing of the cross-border bid to create a regional trading champion only months before the UK could vote to leave the EU.
But people close to the negotiations told the Financial Times that the timing was deliberate, and designed to move while potential predators
awaited the outcome of the June 23 UK referendum. “Brexit provided the camouflage,” said one person familiar with the discussions.
The exchanges are
closing in on a deal to create an infrastructure that would serve as a connection between Europe’s pre-eminent financial centre and the rest of the EU, irrespective of the British vote.
“We are providing a wonderful bridge across regulatory regimes and use whatever outcome there is to the advantage of EU, UK or Germany,” the person said.
The combination has also been discussed with senior politicians in London and Berlin. It is understood from those close to the deal that Downing Street was kept informed about the possible merger of the two exchanges: David Cameron’s spokesman said Downing Street had no concerns about it.
The deal, which may come as early as next week, is set to outline an “all-share merger of equals” that
creates a unified European entity able to fend off potential bids from US duo
CME Group and
Intercontinental Exchange (ICE).
A combined Deutsche Börse and LSE would have a market capitalisation of around $28bn, comparable to their US rivals.
Xavier Rolet, chief executive of the LSE, and
Carsten Kengeter, his German counterpart, also hope to exploit potential distractions at ICE, which last year spent $6bn on the purchases of Interactive Data Corp and Trayport.
Both ICE and the CME may also need to shift some assets from London into the eurozone in the event of a “leave” vote.
The transaction’s structure is also being designed to allay concerns among German politicians and employees that the deal will see further economic power ebbing to London. A formal deal is likely to reveal a London-based holding company with dual headquarters in the UK capital and Frankfurt.
Günter Isemeyer, spokesman for Verdi, the German services trade union, said it was a “matter of concern” that there would be only one board of the new London-based holding company.
He said it would have implications for “Mitbestimmung” or “co-determination” — the German system under which workers can elect trade union representatives to supervisory boards. However, few Deutsche Börse employees are Verdi members.
not a subscriber either
killer b
