Friday 1 July 2011

Middle East may hold the key after collapse of London Stock Exchange merger - The National

Middle East investors appear to hold the key to the future of the London Stock Exchange as the bourse is regarded as vulnerable to a takeover after its potential merger with Canada's TMX Group collapsed.

The US$3.5 billion (Dh12.85bn) merger between the London Stock Exchange (LSE) and TMX fell apart late on Wednesday after failing to get support from two thirds of shareholders. Amid a wave of consolidation in the industry, the development sparked speculation that the exchange needs another partner.

Borse Dubai is the largest single shareholder in the LSE, owning 20.6 per cent, and the Qatar Investment Authority holds 15.1 per cent. Both entities will be influential in determining whether to pursue a new tie-up.


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