Friday, April 28, 2006
BBC NEWS | Business | HSBC glitch delays worker payday
Vodafone sees rumours of 155p per share Verizon offer - report
Vodafone sees rumours of 155p per share Verizon offer - report
Story
Vodafone was the subject of speculation regarding a potential 155p per share offer from Verizon, a Financial Times market report said. The report did not cite sources. The Times’ Rumour of the Day column noted talk that Verizon, the US-listed telecoms group, will acquire Vodafone’s shareholding in Verizon Wireless, the US mobile network joint venture between the two groups. Analysts cited by the Times report said the Verizon Wireless stake as being peripheral to Vodafone. Vodafone shares were 2.75p up to 130.5p at the close of trading, giving the company a market capitalisation of GBP 78.47bn (EUR 112.84bn).
Source
Financial Times, The Times
Story
Vodafone was the subject of speculation regarding a potential 155p per share offer from Verizon, a Financial Times market report said. The report did not cite sources. The Times’ Rumour of the Day column noted talk that Verizon, the US-listed telecoms group, will acquire Vodafone’s shareholding in Verizon Wireless, the US mobile network joint venture between the two groups. Analysts cited by the Times report said the Verizon Wireless stake as being peripheral to Vodafone. Vodafone shares were 2.75p up to 130.5p at the close of trading, giving the company a market capitalisation of GBP 78.47bn (EUR 112.84bn).
Source
Financial Times, The Times
BBC NEWS | Business | US fears firms listing overseas
Thursday, April 27, 2006
NYSE Group plans to raise $1.7bn in offering
The NYSE Group, which controls the New York Stock Exchange, yesterday announced that it would try to raise $1.7bn in its secondary equity offering, which is expected early next month.
The amount is slightly lower than some estimates, but will still make the offering one of the biggest deals of the year.
The offering effectively completes the NYSE's demutualisation, following its merger last month with Archipelago Holdings, by allowing its existing members, or "seatholders" to sell their positions.
Previous holders of Archipelago are also raising cash through the offering.
Investment banks involved include JP Morgan, Bank of America, Bear Stearns, Credit Suisse, Citigroup, Deutsche Bank, Goldman Sachs, Jefferies & Company, and UBS.
Gerald Putnam, formerly chief executive of Archipelago, will be selling 373,000 shares as part of the offering, which would be worth $25.7m at yesterday's prices. This reduces his overall stake from 1.1 to 0.9 per cent.
Goldman Sachs, a backer of Archipelago, will reduce its stake in the NYSE from 5.8 to 4.7 per cent, while General Atlantic, the other big backer of Archipelago, will reduce its stake from 6.7 to 5.5 per cent.
Separately, Marshall Carter, the NYSE's president, complained in testimony to Congress that US corporate governance regulations were hampering the exchange in the competition for international listings of companies. Saying that the costs of regulation in the US following the Sarbanes-Oxley corporate governance regulation had contributed to a sharp fall in international companies raising equity in the US, he added that overseas listings were helping issuers to circumvent US rules.
He said: "The factors that are causing more non-US companies to raise capital overseas instead of in the US are denying US investors the benefits of transparency and investor protection that are the hallmarks of US registered offerings."
The London Stock Exchange's success in winning international listings is a key element in its appeal to the big US exchanges.
The amount is slightly lower than some estimates, but will still make the offering one of the biggest deals of the year.
The offering effectively completes the NYSE's demutualisation, following its merger last month with Archipelago Holdings, by allowing its existing members, or "seatholders" to sell their positions.
Previous holders of Archipelago are also raising cash through the offering.
Investment banks involved include JP Morgan, Bank of America, Bear Stearns, Credit Suisse, Citigroup, Deutsche Bank, Goldman Sachs, Jefferies & Company, and UBS.
Gerald Putnam, formerly chief executive of Archipelago, will be selling 373,000 shares as part of the offering, which would be worth $25.7m at yesterday's prices. This reduces his overall stake from 1.1 to 0.9 per cent.
Goldman Sachs, a backer of Archipelago, will reduce its stake in the NYSE from 5.8 to 4.7 per cent, while General Atlantic, the other big backer of Archipelago, will reduce its stake from 6.7 to 5.5 per cent.
Separately, Marshall Carter, the NYSE's president, complained in testimony to Congress that US corporate governance regulations were hampering the exchange in the competition for international listings of companies. Saying that the costs of regulation in the US following the Sarbanes-Oxley corporate governance regulation had contributed to a sharp fall in international companies raising equity in the US, he added that overseas listings were helping issuers to circumvent US rules.
He said: "The factors that are causing more non-US companies to raise capital overseas instead of in the US are denying US investors the benefits of transparency and investor protection that are the hallmarks of US registered offerings."
The London Stock Exchange's success in winning international listings is a key element in its appeal to the big US exchanges.
LSE head in written warning to Putin
The head of the London Stock Exchange has taken the extraordinary step of writing to Vladimir Putin, Russia’s president, on behalf of Russia’s largest foreign investor, who has been denied permission to enter the country since November.
In her letter, a copy of which has been obtained by the Financial Times, Clara Furse, LSE chief executive, warns that Moscow’s decision to bar William Browder, who runs Hermitage Capital Management, an investment fund, may do “significant damage to Russia’s reputation”.
Ms Furse’s decision to write directly to the Russian president is perhaps the most eye-catching consequence of a skilfully orchestrated lobbying and public relations campaign which has seen Mr Browder also securing the support of Jack Straw, the British foreign secretary, and Jean Lemierre, president of the European Bank for Reconstruction and Development. Both are understood to have raised his case with senior members of the Russian administration.
For the full text of Clara Furse’s letter to Vladimir PutinClick here
Ms Furse says Mr Browder’s exclusion “could have a negative impact on Russia’s image as a country that welcomes foreign investment, and on the ability of Russian companies to raise capital outside Russia”.
She adds: “If the single largest investor in the Russian market can be arbitrarily denied entry into the country, that would send a very negative signal to other parties seeking to invest in Russian companies.”
"If the single largest investor in the Russian market can be arbitrarily denied entry into the country, that would send a very negative signal to other parties seeking to invest in Russian companies" Clara Furse, head of the LSE
Her unusual intervention highlights not only concerns about unorthodox business and investment practices in Russia but also the potential reputational damage to London, which has become the location of choice for Russian companies seeking to raise capital from foreign investors.
In 2005 Russian initial public offerings raised $5.1bn (£2.9bn) on the LSE, accounting for about 14 per cent of all new capital raised there. The wave of listings has confirmed London as a centre for international capital market activities and may explain the willingness of senior political figures like Mr Straw to intervene on behalf of the US-born Mr Browder.
Senior Whitehall insiders conceded the level of contact was unusual but noted that Mr Browder was “a high profile and influential investor in Russia”.
Separately, the Investor Protection Association, Russia’s largest federation of institutional investors, has also written to Mr Putin on Mr Browder’s behalf.
Hermitage is a Guernsey-based investment fund which has been investing in Russia since 1996.
Mr Browder’s exclusion from Russia is all the more surprising because he has been a vocal supporter of Mr Putin’s economic policies at a time when criticism from Western government officials and business executives has been rising.
Ms Furse made this point in her letter to Mr Putin, noting that barring Mr Browder may make it harder for Russian companies to raise capital, “especially given that Mr Browder is widely known as an outspoken supporter of your administration and Russian economic policies.”
However, Mr Browder has also been an outspoken critic of the corporate governance practices of Russian companies and has repeatedly engaged in legal action to defend what he describes as the abrogation of shareholder rights.
Significantly, Ms Furse’s intervention comes just months before state-owned oil and gas giant Rosneft launches its initial public offering on the LSE, which is expected to be the largest IPO ever, raising up to $20bn.
The LSE would not confirm that Ms Furse had written to Mr Putin but commented: “If the LSE has written to the Russian Federation president, it would have been a private matter.”
In her letter, a copy of which has been obtained by the Financial Times, Clara Furse, LSE chief executive, warns that Moscow’s decision to bar William Browder, who runs Hermitage Capital Management, an investment fund, may do “significant damage to Russia’s reputation”.
Ms Furse’s decision to write directly to the Russian president is perhaps the most eye-catching consequence of a skilfully orchestrated lobbying and public relations campaign which has seen Mr Browder also securing the support of Jack Straw, the British foreign secretary, and Jean Lemierre, president of the European Bank for Reconstruction and Development. Both are understood to have raised his case with senior members of the Russian administration.
For the full text of Clara Furse’s letter to Vladimir PutinClick here
Ms Furse says Mr Browder’s exclusion “could have a negative impact on Russia’s image as a country that welcomes foreign investment, and on the ability of Russian companies to raise capital outside Russia”.
She adds: “If the single largest investor in the Russian market can be arbitrarily denied entry into the country, that would send a very negative signal to other parties seeking to invest in Russian companies.”
"If the single largest investor in the Russian market can be arbitrarily denied entry into the country, that would send a very negative signal to other parties seeking to invest in Russian companies" Clara Furse, head of the LSE
Her unusual intervention highlights not only concerns about unorthodox business and investment practices in Russia but also the potential reputational damage to London, which has become the location of choice for Russian companies seeking to raise capital from foreign investors.
In 2005 Russian initial public offerings raised $5.1bn (£2.9bn) on the LSE, accounting for about 14 per cent of all new capital raised there. The wave of listings has confirmed London as a centre for international capital market activities and may explain the willingness of senior political figures like Mr Straw to intervene on behalf of the US-born Mr Browder.
Senior Whitehall insiders conceded the level of contact was unusual but noted that Mr Browder was “a high profile and influential investor in Russia”.
Separately, the Investor Protection Association, Russia’s largest federation of institutional investors, has also written to Mr Putin on Mr Browder’s behalf.
Hermitage is a Guernsey-based investment fund which has been investing in Russia since 1996.
Mr Browder’s exclusion from Russia is all the more surprising because he has been a vocal supporter of Mr Putin’s economic policies at a time when criticism from Western government officials and business executives has been rising.
Ms Furse made this point in her letter to Mr Putin, noting that barring Mr Browder may make it harder for Russian companies to raise capital, “especially given that Mr Browder is widely known as an outspoken supporter of your administration and Russian economic policies.”
However, Mr Browder has also been an outspoken critic of the corporate governance practices of Russian companies and has repeatedly engaged in legal action to defend what he describes as the abrogation of shareholder rights.
Significantly, Ms Furse’s intervention comes just months before state-owned oil and gas giant Rosneft launches its initial public offering on the LSE, which is expected to be the largest IPO ever, raising up to $20bn.
The LSE would not confirm that Ms Furse had written to Mr Putin but commented: “If the LSE has written to the Russian Federation president, it would have been a private matter.”
Euronext had Dubai contact but no bid evidence, hints NYSE prefers it over LSE, more cautious ahead of AGM
The Dubai International Financial Centre did make contact with Euronext executives to inform them it was increasing its stake in the exchange, but Euronext believes there is no basis for believing the centre intends to make a bid, it is understood. At the same time, a source close to Euronext has declined to say whether he thought the New York Stock Exchange appears keener to buy the London Stock Exchange or the pan-European house. But he pointed to an interview with NYSE chief executive John Thain in March in which Thain identified NYSE’s main M&A goals as being to broaden its product mix, through derivatives, and make strategic links with European exchanges. Earlier this month, another Euronext source indicated that one of the US exchanges had given the pan-European exchange the impression that it was its top target. Sources at Citigroup, NYSE’s adviser, declined to comment. A person close to Euronext said he could not say what NYSE’s preferences were, but the US exchange could well have given the European house the impression it was its prime target, he claimed. Euronext was sounding a more cautious note today over previous claims by sources close to it that it intended to recommend an approach to shareholders at its AGM on 23 May. Given the preliminary nature of the discussions between the exchanges and the unpredictability of the present situation, Euronext may be unable to do this, the exchange privately admitted. But a spokeswoman for Euronext said today that, whatever happened, the exchange would “make all the options clear” to its shareholders at the AGM, “and, if possible, give them a recommendation”. The first Euronext source commented that a three-way merger between exchanges was an unlikely outcome, given the huge complications of merging just two of these businesses. The Dubai International Financial Centre declined to comment.
Wednesday, April 26, 2006
BBC NEWS | Business | Russia's Gazprom eyes British Gas
BoC listing could provoke backlash
Bank of China, the country’s third-largest lender, will this week seek regulatory approval to raise up to US$8bn in Hong Kong, in a listing that could hand foreign investors led by Royal Bank of Scotland a paper profit of more than US$4bn.
//
But news that the RBS consortium – which includes the tycoon Li Ka-shing’s charitable foundation, Merrill Lynch and hedge funds – stands to more than double the value of its investment in less than a year could deepen an anti-foreigner backlash in China.
People close to the situation said BoC, the second of the “Big Four” state lenders to list overseas, was set to present to the Hong Kong stock exchange its plans to raise between US$6bn and US$8bn through a listing of 10 per cent of its shares.
That compares with the US$3.1bn paid by the RBS consortium for a 10 per cent stake in August. The investment bank UBS and Temasek, Singapore’s state investment agency, have bought smaller stakes.
Although the overseas shareholders cannot sell their shares for three years, their notional capital gain could reinforce arguments that Beijing is selling state assets to foreigners cheaply.
Foreign investors argue that they deserve a discount to the IPO price as they take on extra risk by buying well ahead of a listing.
However, the deal with the RBS consortium, under which the UK bank took a 5 per cent stake in BoC for US$1.6bn, was criticised in China because the foreign investors won guarantees against a deterioration in BoC’s finances.
The lender’s decision to sell just 10 per cent of its capital – less than most other overseas-listed state companies – could increase the foreign investors’ paper profit further by boosting demand and sending the shares higher.
Analysts said the small free float for the IPO could make it difficult for foreign institutions to buy into the offering, scheduled for June.
The shares available for foreign fund managers could be further curbed by a pledge to sell Temasek an extra US$500m of stock in the IPO, as well as plans to earmark another portion of the offering for Hong Kong tycoons and expected strong demand from retail investors.
Under Hong Kong stock exchange rules, the proportion of an IPO to be sold to retail investors can increase from a minimum of 10 per cent to up to 50 per cent depending on the level of demand.
People close to the situation said BoC had won approval from Chinese regulators to sell about 15 per cent of its capital. However, it had decided to restrict the size of the overseas listing because of demands from Chinese regulators to sell some shares on the domestic stock market at a later stage.
//
But news that the RBS consortium – which includes the tycoon Li Ka-shing’s charitable foundation, Merrill Lynch and hedge funds – stands to more than double the value of its investment in less than a year could deepen an anti-foreigner backlash in China.
People close to the situation said BoC, the second of the “Big Four” state lenders to list overseas, was set to present to the Hong Kong stock exchange its plans to raise between US$6bn and US$8bn through a listing of 10 per cent of its shares.
That compares with the US$3.1bn paid by the RBS consortium for a 10 per cent stake in August. The investment bank UBS and Temasek, Singapore’s state investment agency, have bought smaller stakes.
Although the overseas shareholders cannot sell their shares for three years, their notional capital gain could reinforce arguments that Beijing is selling state assets to foreigners cheaply.
Foreign investors argue that they deserve a discount to the IPO price as they take on extra risk by buying well ahead of a listing.
However, the deal with the RBS consortium, under which the UK bank took a 5 per cent stake in BoC for US$1.6bn, was criticised in China because the foreign investors won guarantees against a deterioration in BoC’s finances.
The lender’s decision to sell just 10 per cent of its capital – less than most other overseas-listed state companies – could increase the foreign investors’ paper profit further by boosting demand and sending the shares higher.
Analysts said the small free float for the IPO could make it difficult for foreign institutions to buy into the offering, scheduled for June.
The shares available for foreign fund managers could be further curbed by a pledge to sell Temasek an extra US$500m of stock in the IPO, as well as plans to earmark another portion of the offering for Hong Kong tycoons and expected strong demand from retail investors.
Under Hong Kong stock exchange rules, the proportion of an IPO to be sold to retail investors can increase from a minimum of 10 per cent to up to 50 per cent depending on the level of demand.
People close to the situation said BoC had won approval from Chinese regulators to sell about 15 per cent of its capital. However, it had decided to restrict the size of the overseas listing because of demands from Chinese regulators to sell some shares on the domestic stock market at a later stage.
Tuesday, April 25, 2006
Investors find long-lost share dividends
Monday, April 24, 2006
LSE hasn't received approach from NYSE
Sunday, April 23, 2006
Exchange News
Friday, April 21, 2006
BBC NEWS | Business | Spanish firm buying Bristol Water
BBC NEWS | Business | BAA asks for shareholder loyalty
FT.com / Comment & analysis / Letters - EU infrastructure services companies should be run the way market wants
FT.com / Comment & analysis / Letters - EU infrastructure services companies should be run the way market wants: "EU infrastructure services companies should be run the way market wants
By Alberto Giovannini
Published: April 19 2006 03:00 Last updated: April 19 2006 03:00
From Mr Alberto Giovannini.
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Sir, Kurt Viermetz says ('No need to tinker with the integrated clearing model', April 13) that the broker-dealers who expressed criticism of antiquated and fragmented European market infrastructures are self-serving; they were expected to be so, and there is nothing wrong with that. Charlie McCreevy, the internal market commissioner, wanted to hear the honest, self-interested views of the users' community. They expressed self-interested comments on the fact that their own cross-border trading within the European Union is unacceptably cumbersome and expensive, and that with this market infrastructure the EU financial system is unlikely to develop much.
Why are broker-dealers so vocal? Because they are acutely aware of the costs they bear directly, and of the business potentials of a barrier-free EU financial market. Unfortunately, a very large chunk of the excessive costs of cross-border trading is borne by final buyers of investment funds, who cannot possibly be aware of the existence of such costs. The fund managers do not bear the costs directly: they charge them to the funds.
I share Mr Viermetz's call for the removal of the legal and tax barriers I have described in my reports. The removal of these and of the other barriers will make securities transactions really easy in Europe so that the intermediaries, whose costs Mr Viermetz rightly laments, will have a much smaller role than they have now.
The debate on infrastructure reform is not a fing"
By Alberto Giovannini
Published: April 19 2006 03:00 Last updated: April 19 2006 03:00
From Mr Alberto Giovannini.
ADVERTISEMENT
Sir, Kurt Viermetz says ('No need to tinker with the integrated clearing model', April 13) that the broker-dealers who expressed criticism of antiquated and fragmented European market infrastructures are self-serving; they were expected to be so, and there is nothing wrong with that. Charlie McCreevy, the internal market commissioner, wanted to hear the honest, self-interested views of the users' community. They expressed self-interested comments on the fact that their own cross-border trading within the European Union is unacceptably cumbersome and expensive, and that with this market infrastructure the EU financial system is unlikely to develop much.
Why are broker-dealers so vocal? Because they are acutely aware of the costs they bear directly, and of the business potentials of a barrier-free EU financial market. Unfortunately, a very large chunk of the excessive costs of cross-border trading is borne by final buyers of investment funds, who cannot possibly be aware of the existence of such costs. The fund managers do not bear the costs directly: they charge them to the funds.
I share Mr Viermetz's call for the removal of the legal and tax barriers I have described in my reports. The removal of these and of the other barriers will make securities transactions really easy in Europe so that the intermediaries, whose costs Mr Viermetz rightly laments, will have a much smaller role than they have now.
The debate on infrastructure reform is not a fing"
Thursday, April 20, 2006
BBC NEWS | Business | Gazprom warns EU to let it grow
FT.com / Lex - Lex: Treasury shares
Tuesday, April 18, 2006
ABC News: Acquisitive NYSE pushes toward Europe: sources
BBC NEWS | Business | Standard Life reveals windfalls
CCB ponders buying stake in Bear Stearns
Bear Stearns has held preliminary talks with China Construction Bank about a deal that could involve the state-controlled Chinese lender taking a large minority stake and a board seat at the US investment bank.
According to people familiar with the matter, no agreement is imminent, and there has only been early-stage contact between senior executives at the banks.
The negotiations with CCB come 19 years after Bear Stearns agreed to sell a 20 per cent stake � worth $390m at the time � to a unit of Jardine Matheson, the Hong Kong-based financial services and construction company. But that deal unravelled because of the stock market crash of 1987.
By linking up with CCB, Bear Stearns would follow in the footsteps of rivals such as Morgan Stanley and Goldman Sachs, which have recently gained significant prese
Can Bear Stearns join the China club and get somebody else to pay the entry fee?
Click here to read Lex
nces in China�s economy through deals with the country�s financial institutions.
But the structure of the potential deal could be controversial: it would mark the first case of a big Wall Street bank being prepared to welcome a state-controlled Chinese company as its largest shareholder. Sources of foreign investment have become a hot issue in the US as politicians mounted successful campaigns to block foreign bids for US companies.
One possibility would involve CCB � the second largest of the big four state-controlled Chinese banks � buying Bear Stear"
According to people familiar with the matter, no agreement is imminent, and there has only been early-stage contact between senior executives at the banks.
The negotiations with CCB come 19 years after Bear Stearns agreed to sell a 20 per cent stake � worth $390m at the time � to a unit of Jardine Matheson, the Hong Kong-based financial services and construction company. But that deal unravelled because of the stock market crash of 1987.
By linking up with CCB, Bear Stearns would follow in the footsteps of rivals such as Morgan Stanley and Goldman Sachs, which have recently gained significant prese
Can Bear Stearns join the China club and get somebody else to pay the entry fee?
Click here to read Lex
nces in China�s economy through deals with the country�s financial institutions.
But the structure of the potential deal could be controversial: it would mark the first case of a big Wall Street bank being prepared to welcome a state-controlled Chinese company as its largest shareholder. Sources of foreign investment have become a hot issue in the US as politicians mounted successful campaigns to block foreign bids for US companies.
One possibility would involve CCB � the second largest of the big four state-controlled Chinese banks � buying Bear Stear"
Telegraph | Money | Australians mull bid for De Broe
Telegraph | Money | Citigroup's record figures surprise analysts
Monday, April 17, 2006
BBC NEWS | Business | China backs overseas investment
BAA turns Goldman bid down - Marketplace by Bloomberg - International Herald Tribune
Telegraph | Money | New York making overtures to Furse
Telegraph | Money | US giant joins chase for airports
Sunday, April 16, 2006
CFO article re SOX
Friday, April 14, 2006
Consultation Paper on UK and Ireland Market Dematerialisation
A consultation paper regarding the dematerialisation of UK and Ireland Securities was available from 6 April 2006.The paper outlines the following proposals:- Shareholders to remain on the share register and receive voting options; - Proposed introduction of paper-free settlement for all share transactions; - AGM/EGM invitations and annual reports to be issued electronically.Please note that the closing date for the submission of response forms is 30 June 2006. In addition written comments can be sent to the following address:Dematerialisation, ICSA, 16 Park Crescent, London, W1B 1AH. A copy of the consultation paper can be obtained now via the following website: www.icsa.org.uk/demat.
LSE and NYSE make preliminary soundings regarding bid talks - reports
The London Stock Exchange (LSE) and the New York Stock Exchange (NYSE) have made preliminary contacts regarding potential merger negotiations, a report in The Times said. Although the NYSE cannot officially make such a move, it is believed advisers to both parties have been in contact, according to the unsourced report. LSE said it is looking at potential mergers with its counterparts, without divulging the identity of any potential partner, a report in The Independent said. The Independent report also said LSE is thought to be in discussions with NYSE. Sources close to the talks cited by the Independent article thought LSE most likely to agree a merger with Euronext, the pan-European exchange.
FT.com / Financial Services / M&A - B&B offers €2.36bn for control of Eircom
Scotsman.com Business - Court gives green light to Standard Life float
LSE takes aim at China bank
French banks pool stakes in Euronext
Thursday, April 13, 2006
JSE open to takeover by LSE
The Johannesburg Stock Exchange (JSE) would support a takeover bid by the London Stock Exchange (LSE), according to a report in Moneyweb.
The report cited JSE CEO Russell Loubser as saying that if the LSE wanted to buy 100% of the JSE with the intention of developing South African financial markets, he would support it.
Loubser also explained that the JSE based its listing requirements on LSE regulations.
The JSE has a market capitalisation of about ZAR 1.8bn (about USD 295m).
SourceMoneyweb (SA)"
The report cited JSE CEO Russell Loubser as saying that if the LSE wanted to buy 100% of the JSE with the intention of developing South African financial markets, he would support it.
Loubser also explained that the JSE based its listing requirements on LSE regulations.
The JSE has a market capitalisation of about ZAR 1.8bn (about USD 295m).
SourceMoneyweb (SA)"
Markets this morning - Amsterdam
Euronext was down 3.49 pct at 67.70 amid news four French banks and Belgium's Dexia signed a shareholder pact regarding their combined 9.7 pct holding in the financial markets operator
FT.com / Comment & analysis / Comment - No need to tinker with the integrated clearing model
Telegraph | Money | LSE in talks with other exchanges
Wednesday, April 12, 2006
Euronext would prefer merger to being acquired; has not yet decided which approach it will recommend
Euronext would prefer a merger with another exchange to being acquired, it is understood.
The pan-European exchange has not yet decided which it prefers among the expressions of interest it has received from other exchanges, it was said.
The exchange believes it has already made clear, through its statement on 3 April, that it expects to be able to recommend one of the informal approaches it has received at its AGM on 23 May, it is understood.
The exchange said it had been in contact with a number of potential partners who had given it the impression it would be their �preferred partner�. Euronext might be including the London Stock Exchange in this group, but was not thinking of Deutsche Boerse, it was said.
The LSE privately admitted yesterday to having had conversations with Euronext, but said it was �miles away from negotiations�.
Euronext would not reveal the identities of the other interested parties, but pointed to recent speculation that the New York Stock Exchange and the two Chicago exchanges might be looking at it.
The New York Stock Exchange declined to comment. The Chicago Mercantile Exchange refused to say whether it had approached Euronext, but a CME spokesman said the exchange had already said it was interested in consolidating. Yesterday an insider at Goldman Sachs confirmed a rumor that Goldman was advising CME. The Chicago Board of Trade was unavailable for comment.
Euronext does not feel it has to make an announcement if "
The pan-European exchange has not yet decided which it prefers among the expressions of interest it has received from other exchanges, it was said.
The exchange believes it has already made clear, through its statement on 3 April, that it expects to be able to recommend one of the informal approaches it has received at its AGM on 23 May, it is understood.
The exchange said it had been in contact with a number of potential partners who had given it the impression it would be their �preferred partner�. Euronext might be including the London Stock Exchange in this group, but was not thinking of Deutsche Boerse, it was said.
The LSE privately admitted yesterday to having had conversations with Euronext, but said it was �miles away from negotiations�.
Euronext would not reveal the identities of the other interested parties, but pointed to recent speculation that the New York Stock Exchange and the two Chicago exchanges might be looking at it.
The New York Stock Exchange declined to comment. The Chicago Mercantile Exchange refused to say whether it had approached Euronext, but a CME spokesman said the exchange had already said it was interested in consolidating. Yesterday an insider at Goldman Sachs confirmed a rumor that Goldman was advising CME. The Chicago Board of Trade was unavailable for comment.
Euronext does not feel it has to make an announcement if "
BBC NEWS | Business | Eurotunnel warns over its future
FT.com / Lex - Lex: LSE / Nasdaq
Let the end game begin. The London Stock Exchange has spent much of its recent past fending off bidders -in the form of Deutsche Bourse, Euronext and Macquarie -while watching its shares go from strength to strength. Nasdaq's approach looked set to go the same way. The US exchange provided another boost to the LSE share price but walked away rather than bid more than its £9.50 indicative price.
So why has it turned round weeks later and paid £11.75 a share for a 14.99 per cent stake? (Particularly given that it will now have to offer at least that amount if it makes a full offer in the next 12 months.)
It feels like Nasdaq could not bear the idea of being left out of a deal. Euronext is again sniffing around the LSE. Even worse would be the thought of Nasdaq's arch-rival, NYSE Group, doing a deal.
Nasdaq has bought an expensive seat at the table. From here, much depends on how LSE shareholders react. The shares closed at £10.385 on Tuesday. Nasdaq has set a new floor at £11.75. But the fact that Threadneedle, the largest shareholder, was willing to cash out also suggests it believes the best of the share price gains are over. If the LSE's shares do not run away from it, Nasdaq is likely to buy more in the market -allowing it to build a meaningful barrier against others wishing to snatch away its prize.
The game still has some way to run, but Nasdaq has made its commitment clear. With the US exchange breathing down its neck, and valuations looking frothy, the LSE is starting to run short of reasons for not selling out to the highest bidder."
So why has it turned round weeks later and paid £11.75 a share for a 14.99 per cent stake? (Particularly given that it will now have to offer at least that amount if it makes a full offer in the next 12 months.)
It feels like Nasdaq could not bear the idea of being left out of a deal. Euronext is again sniffing around the LSE. Even worse would be the thought of Nasdaq's arch-rival, NYSE Group, doing a deal.
Nasdaq has bought an expensive seat at the table. From here, much depends on how LSE shareholders react. The shares closed at £10.385 on Tuesday. Nasdaq has set a new floor at £11.75. But the fact that Threadneedle, the largest shareholder, was willing to cash out also suggests it believes the best of the share price gains are over. If the LSE's shares do not run away from it, Nasdaq is likely to buy more in the market -allowing it to build a meaningful barrier against others wishing to snatch away its prize.
The game still has some way to run, but Nasdaq has made its commitment clear. With the US exchange breathing down its neck, and valuations looking frothy, the LSE is starting to run short of reasons for not selling out to the highest bidder."
Telegraph | Money | LSE chief forced to talk after US raid
Tuesday, April 11, 2006
BBC NEWS | Business | Nasdaq snaps up 15% stake in LSE
Colt Telecom rises on private equity bid rumours - report
Colt Telecom, the listed UK-based telecommunications group, topped the FTSE 250 leaders board mid-morning, up 2.5 pence at GBP 0.70 (EUR 1.00) on a revival of possible private equity bid interest talk, AFX reported.
The company was also recently rumoured a potential target for Vodafone. Colt's market capitalisation is GBP 1.06bn.
SourceAFX
ValueGBP 1,063m (market cap) "
The company was also recently rumoured a potential target for Vodafone. Colt's market capitalisation is GBP 1.06bn.
SourceAFX
ValueGBP 1,063m (market cap) "
Monday, April 10, 2006
Raiders linked to Vodafone bid | This is Money
GlobalCustodian.com - JPMorgan And Bank Of New York Confirm Business Unit Swap
Telegraph | Money | Gibraltar flies the flag for its own stock market
Sunday, April 09, 2006
LSE in 'merger of equals' talks with Euronext
Saturday, April 08, 2006
LSE plays down reports of Euronext merger
A source close to LSE has played down reports that talks are to take place between the UK exchange and its pan-European counterpart.
He said Euronext appeared to be talking to a number of possible buyers or merger opportunities, and if it did have informal conversations with LSE, the UK exchange would be one of many discussions. Though he said the issue was currently a sensitive one.
He said he would not be surprised if Nasdaq or the Chicago Mercantile Exchange made a bid for Euronext.
A person close to Nasdaq said they did not think the US exchange was looking at Euronext.
An insider at the CME would only say that the Chicago exchange had �said all along that we intend to be participating in the consolidation of the global trades industry. That�s part of our growth strategy.� He added that as far as he knew CME was not currently using a financial adviser.
LSE is not looking at buying OMX, contrary to some reports, and sees the Swedish exchange as �too small to be relevant�, it is understood.
The UK exchange is currently focusing on carrying out its capital return and drawing up its prospectus, said the LSE source. He speculated that the New York Stock Exchange would be unlikely to be planning any acquisitions in the immediate future because it too was putting out its prospectus due to its secondary share offering.
NYSE declined to comment. "
He said Euronext appeared to be talking to a number of possible buyers or merger opportunities, and if it did have informal conversations with LSE, the UK exchange would be one of many discussions. Though he said the issue was currently a sensitive one.
He said he would not be surprised if Nasdaq or the Chicago Mercantile Exchange made a bid for Euronext.
A person close to Nasdaq said they did not think the US exchange was looking at Euronext.
An insider at the CME would only say that the Chicago exchange had �said all along that we intend to be participating in the consolidation of the global trades industry. That�s part of our growth strategy.� He added that as far as he knew CME was not currently using a financial adviser.
LSE is not looking at buying OMX, contrary to some reports, and sees the Swedish exchange as �too small to be relevant�, it is understood.
The UK exchange is currently focusing on carrying out its capital return and drawing up its prospectus, said the LSE source. He speculated that the New York Stock Exchange would be unlikely to be planning any acquisitions in the immediate future because it too was putting out its prospectus due to its secondary share offering.
NYSE declined to comment. "
Friday, April 07, 2006
BBC NEWS | Business | Ferrovial makes hostile BAA bid
BBC NEWS | Business | Japan to beef up stock exchange
Wednesday, April 05, 2006
Swedes turn to Credit Suisse for advice on wooing the LSE
FT.com / Lex - Lex: Citigroup
For Citigroup, the lifting of a year-long ban on big acquisitions could hardly have come at a more opportune moment. Admittedly, banking valuations look high in much of the world, limiting the appeal of major transactions. Moreover, it probably would have taken a more sizeable deal than the ones recently on Citigroup's radar screen for the Federal Reserve Bank of New York to block it.
But the Fed's decision comes just days after Citigroup's latest run-in with regulators, this time in Australia. Given its string of embarrassments in managing conflicts of interest, a pat on the back by Citigroup's main US supervisor for its new compliance regime is welcome.
The bigger question remains whether the world's largest bank is already paying a price for its sheer size. While small in itself, the Australian dispute highlights the difficulties of managing far-flung outposts to satisfy local regulators, global best practice and shareholders at the same time.
To its credit, Citigroup seems to recognise as much. Its next few purchases are likely to be limited to boosting its retail presence in emerging markets, where the bank's brand-name and technological platform may well give it an edge over local rivals. As an alternative to boosting earnings by betting more of its own money, it also has the merit of creating fewer conflicts of interest.
Together with other steps, such as branch expansions in existing markets, that may eventually help enhance its growth prospects relative to US peers.
Investors hoping for as much should remember, however, that regular buying sprees are what made Citigroup great. Proving that it can run its cumbersome empire eff"
But the Fed's decision comes just days after Citigroup's latest run-in with regulators, this time in Australia. Given its string of embarrassments in managing conflicts of interest, a pat on the back by Citigroup's main US supervisor for its new compliance regime is welcome.
The bigger question remains whether the world's largest bank is already paying a price for its sheer size. While small in itself, the Australian dispute highlights the difficulties of managing far-flung outposts to satisfy local regulators, global best practice and shareholders at the same time.
To its credit, Citigroup seems to recognise as much. Its next few purchases are likely to be limited to boosting its retail presence in emerging markets, where the bank's brand-name and technological platform may well give it an edge over local rivals. As an alternative to boosting earnings by betting more of its own money, it also has the merit of creating fewer conflicts of interest.
Together with other steps, such as branch expansions in existing markets, that may eventually help enhance its growth prospects relative to US peers.
Investors hoping for as much should remember, however, that regular buying sprees are what made Citigroup great. Proving that it can run its cumbersome empire eff"
Telegraph | Money | LSE goes on front foot in bid to lead bourse merger moves
Tuesday, April 04, 2006
BBC NEWS | Business | Citigroup has takeover ban lifted
GlobalCustodian.com - JPMorgan To Swap Part Of Securities Services Business For Bank of New York's Retail Banking Arm, Say Reports
Telegraph | Money | Furse will sound out Euronext
Saturday, April 01, 2006
RBS director dismisses reports of possible bid from Wachovia, Citigroup
mergermarket.com: "RBS director dismisses reports of possible bid from Wachovia, Citigroup "
