the merger between Deutsche Börse and the London Stock Exchange (LSE) has the blessing of shareholders. On Tuesday, the last day of the extended by two weeks conversion period the lowered 60 percent threshold at 17 o’clock with 60.35 percent was slightly exceeded, as the German stock exchange announced in an ad hoc announcement. So now begins a two-week Wren period in which the remaining shareholders of Deutsche Börse can tender their securities in exchange for shares in the initial public holding.
Author: Daniel Mohr, editor in business.
the result expresses serious doubts of shareholders on merger. They had to pass judgment on a contract, which is long outdated in this form by the Proposed referendum on United Kingdom membership of the European Union recommendation. The image of the “pig in a poke” is making the rounds that you just hate to buy. The proposed office of the merged exchange Holding in London at any rate from the table. Both the Financial BaFin, as the Hessian Exchange Commission, which must approve the project, as well as the European Commission had made it clear that they would not take a seat outside the EU in question. As the stock market but wants to bring the interests of the self-confident financial center London with those in Hessen and Brussels under one roof, is still unclear. “Impossible,” judge some shareholders. “We do not rely on a dead horse.”
The Exchange refers to the referendum committee, which these days takes office. Three representatives of the London Stock Exchange to discuss there “many months” with representatives of the German Stock Exchange on the consequences of Brexits and the conclusions for the exchange merger. have acceptable recommendations are that will endure even before the regulators at the end for all concerned. The shareholders a high confidence in the diplomatic skills of committee chairmen Joachim Faber is so demanded, who also chairs the board of Deutsche Börse.
Carsten Kengeter
The confidence of shareholders has recently suffered but. The stock market had awakened in the person of its CEO Carsten Kengeter until recently also in discussion with shareholders the impression that the approval was a mere formality. Two weeks ago, then the initial consent hurdle could no longer hold 75 percent. The merger would have failed it and so the hurdle was with reference to “technical reasons” decreased to 60 percent and extended the deadline by two weeks. Some shareholders have afterwards made use of their right, again to swap originally shares tendered back.
The approval rate may increase in the next few days after processing of all exchange contracts yet, as in the two-week Wren period. Läge they end up at 100 percent, would, as agreed, the Deutsche Börse shareholders hold 54.4 percent in the joint venture, the LSE’s shareholders 45.6 percent. Would they end up landing but for example, only 70 percent, the ratio would be reversed. The LSE shareholders would be in a clear majority. With an approval rate of almost 84 percent both shareholder stock had the same voting weight. According to current market values, the German stock market is 14.4 billion euros 25 percent rated higher than the LSE.
The einzelnene voting weights, however, have no direct influence on the new company. The equal representation of bodies is enshrined. Many shareholders are now shareholders of both companies. American and British shareholders have at Deutsche Börse has a clear majority. German shareholders hold about 15 percent of the papers.
The next step according to the shareholder agreement, the EU will examine whether the merger of the two largest European markets could hinder competition. The settlement of securities transactions in the part of companies Eurex Clearing and London Clearing House (LCH) is likely to be taken a critical look. come this particular warning words from France. The EU-depth investigation could last into next year. Five years ago, the EU said at the urging of the financial center London after long discussions the proposed merger of Deutsche Börse and NYSE Euro Next for competitive reasons. After a nail-biting to shareholder approval now so that courting the favor in Brussels is a priority.
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