JPMorgan to raise stake in London Metal Exchange: sources
US bank JPMorgan Chase will buy failed broker MF Global's minority stake in takeover target the London Metal Exchange, making it the biggest shareholder, sources close to the matter said Wednesday.
JPMorgan will pay £25 million (29 million euros, $39 million) for MF Global's 4.7-percent stake in a deal which values the London Metal Exchange at more than £530 million, the sources told AFP.
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.
JPMorgan will buy the stake from KPMG, the administrator of MF Global's British division, leaving JPMorgan with 10.9 percent of the 134-year-old LME.
The LME in September announced receiving 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