LSE shares slip after takeover

29-06-2007

LSE shares slip after takeover
Shares in the London Stock Exchange (LSE) fell by 0.44 per cent as the markets reacted to its £1 billion takeover of Italy's main stock exchange, the Borsa Italiana, at the weekend.

The deal, confirmed on Saturday, created Europe's biggest stock market and a group with a combined value of £4 billion.

Shareholders of Borsa Italiana will be offered 4.9 LSE ordinary shares for every Borsa ordinary share and the board of the new combined company will consist of seven LSE members and five from Borsa.

The last year has seen many stock exchanges in different countries opting to merge operations. In May, Nasdaq, the US stock market, made a £1.8 billion offer for OMX to form the world's second biggest exchange.

Earlier this year LSE resisted a £2.7 billion takeover bid from Nasdaq. It announced a tie-up deal with the Tokyo Stock Exchange

The deal followed the New York Stock Exchange's successful takeover of Euronext which operates stock markets in Paris, Amsterdam, Brussels and Lisbon.


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