LSE fate could be sealed by February: Reports

LSE fate could be sealed by February: Reports

	Published : Mon, 05 Dec 2005 01:35 By : Richard Owen Print this Story

LONDON - The protracted battle for the control of the London Stock Exchange could finally end in February when the UK Competition Commission wants prospective bidders Euronext and Deutsche Boerse to submit their final reports on the measures taken to address the competition watchdog's concerns.

The Competition Commission said in its web site this week that if it does reach an agreement on the measures taken by either of the contenders, then it will give its nod by the end of February.

A spokesman for Euronext said, "We will be carefully assessing the draft undertakings from the Competition Commission. The timetable is very much as expected. As we've said before, we will be consulting widely with our shareholders on all our strategic options to maximize shareholder value."

The Paris-based European Exchange has already said that it is willing to reduce its stake in the clearer from 41.9 percent to 24.5 percent to allay competition fears if it were to merge with the LSE. The Competition Commission had given clearance to both Euronext and Deutsche Boerse to submit their bids in November, but had asked both to reduce their stakes in the clearers.
Meanwhile, the Australian investment bank, Macquarie is also in the race for the LSE and is reportedly preparing for a hostile takeover.

Macquarie Chief executive Alan Moss is meeting key players in London this week and the results of these meetings could make it clearer if the bank is indeed going to launch its own bid. Goldman Sachs is advising Macquarie in this deal, but it is reported that the bank's board members are apprehensive that Euronext could counter bid to any offer that they put up.

Deutsche Boerse, the German exchange has made it clear that it is not willing to sell its Eurex Clearing stake. Also shareholders are said to be disinclined to make another bid.