Companies

LSE and Borsa Italiana agree takeover in principle

The London Stock Exchange (LSE) has agreed with Borsa Italiana terms of a recommended offer for the Italian bourse. Borsa shareholders will be offered 4.90 LSE shares for each existing share in the Italian exchange. This offer values Borsa at around £1.1bn. 

The Independent’s Jeremy Warner (26 June) argued that LSE chief executive Clara Furse has been wholly vindicated in her resolve to repulse foreign bidders, and deserves shareholder support now she is in an acquisitive mood.

However, added Warner, it is still possible someone might break up the deal: US exchange Nasdaq, which has a 30% stake in the LSE, is unlikely to support the takeover, which may make the LSE too big for Nasdaq’s own acquisition plans. The US exchange, suggested Warner, may vote against the deal, or even sell its LSE stake entirely.

July 2007