Euronext in shareholder talks on LSE bid

3rd March 2005, Comments 0 comments

PARIS, March 3 (AFP) - Euronext, the pan-European stock market operator, is continuing talks with shareholders on the possible acquisition of the London Stock Exchange, a source close to the matter said Thursday, adding that shareholders are "particularly interested" in the financial advantages projected.

PARIS, March 3 (AFP) - Euronext, the pan-European stock market operator, is continuing talks with shareholders on the possible acquisition of the London Stock Exchange, a source close to the matter said Thursday, adding that shareholders are "particularly interested" in the financial advantages projected.

Euronext, which is also continuing talks with the LSE, sees synergies worth EUR 203 million (USD 266.7 million) from a merger.

The amount was twice that of its German rival Deutsche Boerse, which predicts synergies of EUR 100 million from 2008 if it wins the battle to acquire the LSE.

Deutsche Boerse has kicked off another effort to win the flagging support of its large shareholders for its plan, the Financial Times reported.

In a letter sent to shareholders on March 1, Werner Seifert, chief executive of Deutsche Boerse, acknowledged that shareholders had concerns, but said Deutsche Boerse "very strongly" believes the transaction would benefit investors, the report said.

Societe Generale downgraded LSE on Thursday to "hold" from "buy", saying a bidding war was unlikely and that Euronext stood a good chance of getting the approval of LSE's management.

Deutsche Boerse tabled an informal offer of 530 pence per LSE share in December, while Euronext has yet to name its price.

© AFP

Subject: French News

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