UK watchdog delays ruling on LSE bid proposals

01 Jul, 2005

The Competition Commission has delayed a provisional ruling on two take-over proposals for the London Stock Exchange by about two weeks. The Commission had planned to release provisional findings from its in-depth probe in early July, but a spokesman told Reuters on Thursday the findings were now expected in mid-July.
The report will be a significant first indication on whether plans by rivals Deutsche Boerse and Euronext to acquire the LSE will be deemed anti-competitive.
If so, the Commission may suggest possible remedies, which would then be discussed in more detail.
Sources familiar with the companies said the delay was due to a large number of submissions to the inquiry from the LSE's members and trade associations.
The Commission declined to comment on reasons for the delay and said slips in the timetable often occur.
The Commission Web site showed there have been about 30 submissions to the inquiry from third parties, including 11 from customers such as Citigroup and JP Morgan and seven from trade associations, including the Association of British Insurers, the London Investment Banking Association and APCIMS.
Deutsche Boerse kicked off the bid battle for Europe's biggest share market last December by offering 530 pence per LSE share, or 1.3 billion pounds ($2.3 billion).
It withdrew its offer in March after a shareholder mutiny but asked regulators to continue a probe and said it might make a fresh offer if Euronext or another party unveiled a firm bid.
Euronext has yet to make a cash bid pending the outcome of antitrust scrutiny, which it says could have a substantial bearing on the structure of any deal.
The LSE rebuffed the approach by Deutsche Boerse but has said "stock exchange consolidation on the right terms could be in the best interests of customers and shareholders".
The Competition Commission is due to publish its final report on the investigation by Sept. 12. By 1337 GMT LSE shares were up 0.5 percent at 488-1/4p.

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