Saturday, December 10, 2005
Euronext not commenting on Macquarie bid rejection by LSE
Story Euronext NV, a potential bidder for London Stock Exchange PLC, refused to comment on the LSE's rejection of a 580 pence per share offer from Macquarie Bank Ltd, AFX reported.
Euronext, in consultation with its shareholders, is evaluating all strategic options for maximising shareholder value, a spokesman said. Macquarie tabled the indicative offer yesterday, seeking to start talks and asking for more financial information to conduct due diligence, the report stated.
The LSE branded the proposal "derisory" and said it "fundamentally undervalues the company and lacks any strategic or commercial credibility".
LSE's share closed above Macquarie's indicative offer at 612 pence on Thursday, valuing the group at GPB 1.55bn (EUR 2.29bn). The exchange's management is thought to be keen to remain independent, and is reportedly holding out for bids in the region of 700-800 pence.
Euronext will not decide whether to bid until it has finished discussions with the UK Competition Commission about how it would meet conditions set by the commission for a takeover of the LSE. Particularly that Euronext should reduce its stake in its clearing affiliate LCH Clearnet to 14.9% from 41.5%.
Source AFX
Value EUR 2,290m (LSE valuation)
Target London Stock Exchange (LSE) plc
DS
Bidder Euronext NV
DS
Bidder Macquarie Bank Ltd (MBL)
DS
Sectors Financial Services
Internet / ecommerce
SubSectors Securities and commodities brokers
Trading / procurement systems
Intel Type Takeover situations
Countries Australia
Belgium
France
Netherlands
United Kingdom
Intel. Grade Confirmed
Intelligence ID 260770
Euronext, in consultation with its shareholders, is evaluating all strategic options for maximising shareholder value, a spokesman said. Macquarie tabled the indicative offer yesterday, seeking to start talks and asking for more financial information to conduct due diligence, the report stated.
The LSE branded the proposal "derisory" and said it "fundamentally undervalues the company and lacks any strategic or commercial credibility".
LSE's share closed above Macquarie's indicative offer at 612 pence on Thursday, valuing the group at GPB 1.55bn (EUR 2.29bn). The exchange's management is thought to be keen to remain independent, and is reportedly holding out for bids in the region of 700-800 pence.
Euronext will not decide whether to bid until it has finished discussions with the UK Competition Commission about how it would meet conditions set by the commission for a takeover of the LSE. Particularly that Euronext should reduce its stake in its clearing affiliate LCH Clearnet to 14.9% from 41.5%.
Source AFX
Value EUR 2,290m (LSE valuation)
Target London Stock Exchange (LSE) plc
DS
Bidder Euronext NV
DS
Bidder Macquarie Bank Ltd (MBL)
DS
Sectors Financial Services
Internet / ecommerce
SubSectors Securities and commodities brokers
Trading / procurement systems
Intel Type Takeover situations
Countries Australia
Belgium
France
Netherlands
United Kingdom
Intel. Grade Confirmed
Intelligence ID 260770
