AXP American Express Company

EXCHANGES

Deutsche Börse, LSE Deal Backed

The proposed $30 billion merger of Deutsche Börse AG and London Stock Exchange Group PLC has won backing from two influential shareholder-adviser services, even if Britain votes to leave the European Union.

Institutional Shareholder Services Inc. and Glass, Lewis & Co. in recent days sent notices to LSE investors supporting the deal, asserting that the stock-exchange operators are a good fit. The recommendations by ISS and Glass Lewis are significant because LSE needs 75% of its shareholder base to approve of the transaction at a meeting July 4.

"We consider the strategic underpinnings [of the merger as] relatively straightforward," Glass Lewis said, adding LSE investors shouldn't base their vote on the uncertainties associated with the Brexit referendum Thursday. ISS urged LSE investors to support the transaction because the "rationale to merge to create the largest exchange group by income is compelling."

--Eyk Henning

AMERICAN EXPRESS

Move Seeks to Boost Use of Chip Cards

American Express Co. said it would limit the costs of fraudulent credit-card transactions for U.S. retailers as they upgrade their systems to begin accepting chip cards.

Visa Inc. and MasterCard Inc. recently said they would speed up the certification process of chip-reading checkout terminals and limit costs to merchants during the transition from old cards with magnetic stripes.

AmEx's announcement follows widespread complaints from merchants. As of last October, retailers that didn't make the transition to chip cards have been on the hook for counterfeit transactions that previously were covered by card-issuing banks.

Tess Stynes

(END) Dow Jones Newswires

June 23, 2016 02:47 ET (06:47 GMT)

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