Thursday, February 28, 2013

LCH.Clearnet to raise 300 mln stg, Nasdaq to up stake - report

Feb 27 (Reuters) - LCH.Clearnet will raise 300 million

pounds ($454 million) through a capital raising in the coming

days that is expected to see exchange operator Nasdaq OMX Group

raise its minority stake in the trans-Atlantic clearing

house, Sky News reported on Wednesday.

LCH Clearnet is in advanced stages of finalising the

fund-raising as part of a takeover deal by the London Stock

Exchange Group, Sky News said on its website.

The LSE plans to pay 366 million euros ($479.8 million) for

60 percent of LCH, which as a clearing house makes its money by

acting as a middle man in financial trades and guaranteeing to

complete deals if one of the parties involved can't.

The deal offers the LSE diversification from its equities

base into the many debt and currency markets in which LCH

operates, but the exchange has already cut its offer price after

estimating that regulatory demands could require LCH to raise

300 million euros in additional capital this year.

The two parties last month set a deadline giving themselves

until Thursday to finalise detailed terms of a deal and Sky News

said the companies are on the brink of an agreement even though

they could still miss the deadline.

LSE Group and LCH declined to comment.

As part of the deal, yet to be finalised as of Wednesday

afternoon, Singapore Exchange operator SGX could

potentially snap up a minority shareholding, while Nasdaq was

also in talks to raise its minority stake in the business, Sky

News said.

Nasdaq declined to comment. SGX could not be reached for

comment outside regular business hours.

Source: http://news.yahoo.com/lch-clearnet-raise-300-mln-stg-nasdaq-stake-214904578--sector.html

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