Posted in LSE, London Stock Exchange, Project Turquoise, Share Price
The big banks rival to the London Stock Exchange, Project Turquoise, steps up a gear with the appointment of EuroCPP as its clearing and settlement system.
The new European share trading platform is the baby of seven investment banks, including Merrill Lynch, Citigroup and Goldman Sachs.
Project Turquoise is set to begin trading in all European shares by the end of this year, lowering business prospects for the LSE.
The group has yet to appoint a chief executive, however.
Posted in Clara Furse, Consolidation, LSE, London Stock Exchange, Nasdaq, Project Turquoise, Robert Greifeld, Share Price, Shares
The penny seems to have dropped for Robert Greifeld and his Nasdaq team that Clara Furse’s gritty defence of London Stock Exchange independence is winning hands down.
On Friday they seemed to have thrown in the towel when it was announced that the Nasdaq offer of £12.43 per share would not be increased, although the deadline for acceptances would be extended until February 10.
Neither the UK Government nor the Office of Fair Trading have offered any comfort for Furse in this steely tussle. She was left to make the business case without the kind of protectionism enjoyed by Nasdaq, which is virtually bid-proof.
For the fifth time in recent years she appears to have made that case supremely well. LSE shareholders, like the hedge funds, owe her nothing, yet have stood firm — so far. Victory is tantalizingly in sight.
When Nasdaq chief Greifeld flew back from the Davos Economic Forum in Switzerland on Friday, he overflew London and went straight back to New York. The symbolism of that move is clear. Clara is not for turning, and Robert knows it.
There are still dangers galore for a newly-refreshed LSE post-February 10. Greifeld could make good his threat to dump his entire near 30pc stake in the LSE onto the market, possibly causing a precipitate decline. That would not be good business, however, and could lose money if the hedge funds cut and ran.
In the longer term newer exchanges permitted under EU laws, such as Project Turquoise might upset the delicate balance of pricing and attraction for new IPOs.
Those are problems for the future, however, and will not prevent victory tasting very sweet.
Posted in Clara Furse, LSE, London Stock Exchange, Nasdaq, Private Equity, Share Price, White Knight
The London Stock Exchange is preparing to present its defence against Nasdaq’s £2.9 billion bid this week.
Its main claim to independence will be a reiteration of the exchange’s buoyant earnings boom, arguing that a price of £12.43 seriously undervalues its potential.
There are suggestions that the LSE may also resume cash returns to shareholders, while continuing its efforts to find a white knight protector.
Posted in Consolidation, Icap, LSE, London Stock Exchange, Nasdaq, Private Equity, Share Price
Michael Spencer, head of the world’s largest inter-dealer broker, ICAP, has suggested he may not sit idly by after Nasdaq’s move on the London Stock Exchange yesterday.
ICAP held abortive talks with the LSE during the summer. However, discussing ICAP’s £400 million takeover of currency trading platform EBS last year, Spencer commented : “The combination of ICAP and EBS networks provides ICAP with a distinctive capability — a high-speed global network for distribution of products that are increasingly traded around the clock.
“Almost all other businesses, the inter-dealer brokers and the exchanges, lack this global capability. Consolidation in these markets continues and ICAP remains in a very strong position.”
He added: “The group remains highly cash-generative with a strong balance sheet.”
Spencer also remarked that the inter-dealer broker market is still growing rapidly. ICAP’s profits in the six months to September rose 23pc to £120.8 million on revenues 22pc higher at £543 million. The shares rose 8.5p to 495p, valuing the business at a shade over £3 billion.
