Strong results may avert LSE bids
September 30, 2005
London - The London Stock Exchange plc (LSE), which runs Europe's largest share market, expected an "excellent trading performance" following a buoyant listing period and strong growth in share trading, the company said yesterday.
The LSE, a strong takeover target, said the five months to the end of August was the strongest period for new issue activity in over three years, with total new issues up almost 50 percent to 272.
The company also said there were record levels of activity in both value and volume traded across its exchanges.
"We have continued to see good momentum in all core business areas," said chief executive Clara Furse. "These trends underpin our expectation of an excellent trading performance."
The LSE has used its good growth prospects to downplay a prospective bidding war between potential suitors Euronext, Deutsche Börse and Macquarie Bank.
Last month the board said the strong first-quarter results had reinforced its "confidence in the growth prospects as an independent group". LSE chairman Chris Gibson-Smith has also said the bourse was not up for sale.
A tie-up with either Euronext or Deutsche Börse would push the new exchange from fourth place into second place globally in terms of market capitalisation and value of equity trading.
In March Deutsche Börse abandoned its £1.4 billion (R15.8 billion) approach after a shareholder revolt, while Euronext has not made a formal approach, nor publicly put a price on its offer.
However, both potential bids remain before Britain's competition commission.
Last month Macquarie Bank expressed an interest in making a cash bid, but the LSE said it had received no formal offer from Australia's largest investment bank.
No date has been given for the release of interim LSE results.
-From SAPA-AP
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