JPMorgan buys LME stake from MF Global UK: administrators
US bank JPMorgan Chase has agreed to buy failed broker MF Global's minority stake in takeover target the London Metal Exchange, administrators KPMG said Wednesday.
"JPMorgan has agreed to purchase all of MF Global's shareholding ... in the London Metal Exchange," KPMG said in an official statement that did not give the price.
However, sources close to the matter told AFP earlier Wednesday that JPMorgan will pay £25 million (29 million euros, $39 million) for the 4.7-percent stake in a deal which values the LME at more than £530 million.
The deal will make JPMorgan the biggest shareholder with a total of 10.9 percent of the 134-year-old LME.
"We received a great deal of interest in the LME shares and are pleased to be in the final stages of concluding a sale," added Richard Heis, joint special administrator of MF Global UK, in the statement.
"The sales process for various aspects of the MF Global UK business continues apace and we are in negotiations with several parties to this end."
Failed broker MF Global filed for bankruptcy late last month after confidence in the company was shattered by a string of losses on its European public debt holdings.
The LME meanwhile announced in September that it had received several expressions of interest in the company. On Wednesday, however, a spokesman said the the Exchange had no new announcements.
Situated in the heart of London's City financial district, the LME is the traditional home for trading of base metals aluminium, copper, lead, tin and zinc.
© 2011 AFP