LSE in Talks With Euronext Over Borsa Italiana Sale; Shares Move -- Second Update
September 18 2020 - 4:24AM
Dow Jones News
By Matteo Castia
-- London Stock Exchange in exclusive talks with Euronext over
sale of Borsa Italiana.
-- Euronext partnering with Italy's Cassa Depositi e Prestiti
and Intesa Sanpaolo.
-- LSE selling Borsa Italiana to ease the European Commission
concerns over acquisition of Refinitiv
Shares in Euronext NV rose Friday after it said that it was in
exclusive talks with London Stock Exchange Group PLC over the
acquisition of Italy's Borsa Italiana.
Euronext said that it had engaged in the talks with LSE with CDP
Equity, an entity owned by Italian investment bank Cassa Depositi e
Prestiti, and Italian banking group Intesa Sanpaolo SpA.
"Italy, through Borsa Italiana, would become the largest revenue
contributor to the enlarged Euronext group," Euronext said.
In a separate release Friday, London Stock Exchange said it had
received and reviewed a number of proposals from several parties
for Borsa Italiana and electronic fixed-income trading market
MTS.
London Stock Exchange shares at 0735 GMT were up 52 pence, or
0.6%, at 8,894 pence, while Euronext shares in Paris were up 4.1
euro ($4.86), or 4.2%, at EUR102.2.
Earlier this month, Euronext and Cassa Depositi e Prestiti
joined forces to present a bid to acquire Borsa Italiana. The bid
was submitted on Sept. 14, in partnership with Intesa Sanpaolo.
In July, LSE started exploring the possibility of selling its
interest in MTS and Borsa Italiana, in an effort to satisfy the
European Commission's regulatory concerns regarding its own deal to
acquire financial-data provider Refinitiv.
The exchange operator had agreed to buy Refinitiv in August 2019
for $27 billion, and the European Commission launched a Phase II
review into the deal.
London Stock Exchange reported in July a pretax profit of 362
million pounds ($469.7 million), at a revenue of GBP1.06 billion,
and declared an interim dividend for the first half of 23.3
pence.
Euronext added that it was not certain the talks will lead to a
transaction.
Write to Matteo Castia at matteo.castia@dowjones.com
(END) Dow Jones Newswires
September 18, 2020 04:09 ET (08:09 GMT)
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