Intercontinental Exchange Opts Not to Bid for London Stock Exchange
May 04 2016 - 8:20AM
Dow Jones News
Intercontinental Exchange Inc. said Wednesday that it doesn't
intend to make an offer for London Stock Exchange Group PLC, saying
it couldn't confirm the potential market and shareholder benefits
of a deal.
London Stock Exchange and Germany's Deutsche Boerse agreed in
March to merge in a deal that would establish Europe's biggest
stock-exchange operator, posing a formidable challenge to large
U.S. rivals.
That pact was thought to set the stage for a potential bidding
war, as U.S. competitors such as Intercontinental Exchange and CME
Group Inc. considered their next moves.
Analysts and industry executives have said that among the
attractive features of LSE, the real prize is its majority stake in
a company called LCH.Clearnet Group Ltd., a so-called clearinghouse
that plays an important role in the market for global interest-rate
swaps, bonds and other instruments.
ICE in particular has made the business of clearing a pillar of
its global constellation of futures and stock exchanges.
ICE's announcement came as it reported higher earnings and
revenue for its first quarter.
Shares were inactive premarket.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
(END) Dow Jones Newswires
May 04, 2016 08:05 ET (12:05 GMT)
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