A consortium of 11 banks and interdealer broker ICAP has bid 813 million euros ($1.07 billion) for European independent clearing house LCH.Clearnet, a source close to the consortium said on Monday. The bid, which was submitted Friday, came as the US Depository Trust & Clearing Corp (DTCC) scrapped its $979 million merger plan with LCH.Clearnet, amid talk of regulatory and political opposition to a trans-Atlantic deal.
The 12-member consortium, which already holds more than 15 percent of the voting rights, is offering 11 euros per share for 73.93 million shares of LCH.Clearnet, the source said.
The consortium and ICAP both declined to comment. LCH.Clearnet could not be immediately reached for comment. A clearing house stands between buyers and sellers of a security, protecting against the default of either party in case they fail to deliver on a trade.

Copyright Reuters, 2009

Comments

Comments are closed.