Euronext to outline plans for LSE
Paris-based stock exchange operator Euronext will this week outline its plans for the control and regulation of the London Stock Exchange, it was reported today.
Euronext, which is locked in a battle with German rival Deutsche Boerse for the LSE, is expected to promise a bid would pose no threat to corporate governance and takeover laws ruling UK-listed companies.
However, reports were divided over whether Euronext would give in to pressure to become a British-listed firm.
Britain's Financial Services Authority (FSA) warned on Friday of “significant” implications if a future owner moved the LSE to another country, raising concerns it might no longer be subject to British takeover and corporate governance laws.
It also warned the FSA might have to share responsibility for investigating market abuse with the authorities of the new owner’s country.
According to newspapers, including the Sunday Telegraph, Euronext believes it can meet these requirements.
Euronext, which runs the Amsterdam, Brussels, Paris and Lisbon exchanges, is not expected to reveal the value of its offer this week.
The race for control of the LSE began in December when it received takeover approaches from Deutsche Boerse and Euronext.
The LSE rejected an offer from Deutsche Boerse, saying it undervalued the business. Euronext has yet to table an official bid.
The LSE is Europe’s biggest stock market and one of the world’s oldest exchanges.
