(September 12 – 11:20 ET) – The London Stock Exchange plc is suspending its merger with the Deutsche Borse to concentrate on fighting off a hostile takeover bid from Sweden’s OM Gruppen, according to a report from CNBC.

The LSE and the Deutsche Borse announced a merger to create Europe’s premier exchange in May. Yesterday OM, the firm which owns the Stockholm Stock Exchange, mailed its hostile offer to LSE shareholders. LSE says it “will write to shareholders setting out detailed reasons for rejecting OM’s offer in due course”. The LSE is being advised by Schroder Salomon Smith Barney and Merrill Lynch.

“The terms of OM’s offer are derisory and, more importantly, their business case is deeply flawed. We have a vision of building a business that will keep the Exchange at the centre of the European equity market. OM’s proposal represents a cul-de-sac for the UK market. The offer document provides nothing new for our shareholders to consider,” said Don Cruickshank, chairman of LSE. “While OM recognises our market position and brand strength, their offer does little to advance our strategic goals in Europe. Our customers want European consolidation, which we believe is the best way to deliver value to our shareholders,” he added.
-IE Staff