CORRECT: LME WEEK: Continuity Key In LME Acquisition Process -Board Members
October 03 2011 - 8:43AM
Dow Jones News
Continuity of operational practices is an important
consideration for members of the London Metal Exchange board as the
bidding process continues for a potential acquisition of the
exchange, two members of the LME board said Monday.
Gavin Prentice of Marex Spectron and Fabian Somerville-Cotton of
HSBC Bank PLC told the LME's annual Metals Seminar here that
respect for the LME's operational traditions and practices will be
a question for the board to consider as they review bids.
"Yes, the ring will be a question," said Prentice, who is
managing director and global head of sales at Marex Spectron,
referring to the LME's open-outcry trading floor.
"The ring continues to flourish and people continue to use it,"
Prentice said. "It is an important part of the price discovery
mechanism."
"Continuity is very important to running a successful business,"
said Somerville-Cotton, a managing director at HSBC and head of the
LME's warehousing committee. "The LME is doing fantastically well
and we are by no means sure that any deal will be done."
At least 10 interested parties have approached the LME about a
potential buyout.
The exchange hasn't named any of the interested parties, but
metals rivals CME Group Inc. (CME), Shanghai Futures Exchange and
Singapore Exchange--as well as the Dubai Mercantile Exchange, the
London Stock Exchange Group PLC (LSE.LN) and
IntercontinentalExchange Inc. (ICE)--have all been named by market
participants as likely to be interested.
The LME accounts for at least 80% of globally traded base metals
such as copper and aluminum.
-By Francesca Freeman, Dow Jones Newswires; +44 (0)20 7842 9412;
francesca.freeman@dowjones.com
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