Sunday, July 10, 2016

+++ +++ Market News: LSE merger: German stock exchange wants hurdle for … – ABC Online

Updated Monday, 07.11.2016, 12:48
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LSE merger: German stock exchange will reduce hurdle for shareholder approval

Monday, July 11 0:44 : the German market will in which tottered planned merger with the London stock exchange at least secure the consent of the own shareholders. It will consider whether the minimum acceptance rate to be lowered by the shareholders, the company announced in Frankfurt late on Sunday. Currently, the minimum acceptance threshold lies at 75 percent. On Monday (11 July), the German stock market will make a decision about it.

The German stock market justified the examination so that so-called index funds, the securities can change only if the new shares of the merged entity each in the Index were recorded. However, this in turn depends on the achievement of certain thresholds. This had not yet reached two days before the withdrawal period, so that the index funds that hold up to 15 percent of the shares present, according to the German Stock Exchange, currently its shares may not change.

In order nevertheless of sufficient get own shareholders green light to the merger with the London Stock Exchange (LSE), the threshold could now be lowered. With this step, the index funds should the exchange be possible and thus at least the approval of its own shareholders to back up. The shareholders of the LSE have already approved the merger.

In addition to the not yet secured approval of its own shareholders the impending exit of Britain from the EU poses problems. By Proposed referendum on United Kingdom membership of the European Union-poll of British voters falls as the previously planned relocation of the headquarters to London well into the water. The distribution of business needs to be checked again. German Exchange CEO Carsten Kengeter but reportedly willing to adapt the structure of the new entity in the political situation.

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