(new: Hessen is skeptical)
FRANKFURT / LONDON (AFX) – The management structure of the proposed European mega-market of Frankfurt and London is , German Exchange CEO Carsten Kengeter to lead the heavyweight division with headquarters in Frankfurt and London, as the German stock exchange & lt; DB1.ETR & gt; and the London Stock Exchance (LSE) announced on Friday. His legal domicile to the new group have in the British capital. The plan is the group formed by German Börse and LSE to lead a company under British law. Shares of both companies rose on Friday
In addition, both sides agreed on other important personal details. LSE Board Chief Donald Brydon will take over this position also in the new entity according to the plans, as his deputy is the current Chairman of Deutsche Börse, Joachim Faber, provided. LSE CFO David Warren to these items also take in the combined group.
LSE CHEF GOES FROM BOARD
The reigning seven years LSE boss Xavier Rolet will leave the company, once the deal is completed. Rolet had decided to “give up his position to support the successful establishment of the new group”. He had the LSE brought back on track.
The German stock exchange and the LSE had been made public by market rumors on Tuesday its intention to a merger on equal terms. No later than March 22 now either a binding offer made or the deal substantial cost synergies need to British specifications initially be blown off.
HOPING FOR DECLINING COSTS
From the union, promise both sides ” “primarily” through the elimination of duplication in the field of technologies and operations across all divisions, business services and support functions across “. Customers also will benefit: “The combination of the London and Frankfurt stock exchanges would provide a liquidity bridge that would widen the range of securities and thus in the regulatory environment looming create benefits for all market participants.”
After the previously published plans to adhere to the joint venture with 54.4 percent, a slight majority shareholders of Deutsche Börse. Together, the two companies would catch up to market value at the two US heavyweights ICE and CME.
AUTHORITIES MUST AGREE
Agree need a merger among others, the EU competition watchdog. Brussels had failed on a crash the last great thrust of Frankfurt into a mega merger with New York Stock Exchange early 2012 Design. the German stock market has been twice on the LSE – 2000 and 2005 -. nut to crack
have LSE and German stock exchange, according to Friday with the competent supervisory authorities and with the governments in the UK, Germany, France and Italy talks on the potential merger added.
HESSE iS sKEPTICAL
the Hesse government is skeptical about whether the seat in London is authorized under dpa information. The Wiesbaden coalition could Although only make a final judgment when it will concretely, it said on Friday. Doubts about the plans existed but especially because of the possible EU exit Britain ( “Proposed referendum on United Kingdom membership of the European Union”). The Frankfurt Stock Exchange is regulated by the Securities and Exchange Commission in the Hessian Ministry of Economics. The Ministry has therefore at the plans to merge a say.
In order to estimate the impact of a possible “Brexits”, translated the two exchange operators a joint advisory body. “Know the parties that a decision of the electorate of the United Kingdom about leaving the European Union poses a risk to the project,” it says in the release.
Proposed referendum on United Kingdom membership of the European Union NO EXCLUSION CRITERIA
However, both sides believe that the merger even in case of “Brexits” still offer great benefits, even if this could lead in the group to a redistribution of transactions. Reportedly stand at present the result of the planned June 23 British referendum therefore is also not a condition for Fusion./ben/enl/glb/DP/enl
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