LCH.Clearnet confirms offers from exchanges (Reuters)

Saturday, May 28, 2011 7:01 AM By dwi

LONDON (Reuters) – European clearinghouse LCH.Clearnet confirmed on Sat it has conventional a progress of offers from exchange operators fascinated in pursuing whatever modify of playing tie-up but said talks were ease at an early stage.

On weekday a maker told Reuters that NYSE Euronext, Nasdaq OMX Group and author Stock Exchange Group Plc had prefabricated bids for LCH in the terminal digit weeks, after the clearer decided to study its strategic alternatives.

In a evidence LCH, Europe's maximal independent clearinghouse, said it has "received different proposals indicating an welfare in pursuing whatever modify of doable playing combination or another cooperation."

Noting advise reflection the group said considerations were at a origin initiate and there was no quality of a deal.

On Friday, the Financial Times reportable that the bids ranged from 350 meg to 1 1000000000 euros ($1.43 billion), and were prefabricated at a commission meeting, citing threesome sources familiar with the matter.

LCH -- owned by a sort of banks and another mart participants, and the target of bids in the time -- has prefabricated no test decision on selling, the prototypal maker said.

The threesome exchanges declined to interpret on the reports.

Clearinghouses, which stand between parties to a trade to indorse obligations if there is a default, have entered the prominence since the 2007-2009 business crisis. Legislators and regulators poverty to separate as some clannish derivatives as doable finished the clearers to alter the business system.

Meanwhile the exchanges are in the interior of perhaps the industry's maximal compounding wave ever, with NYSE Euronext ordered to merge with Germany's Deutsche Boerse AG and LSE thinking to combine with Canada's TMX Group Inc. A Nasdaq counterbid for NYSE failed early this month.

While NYSE Euronext has a stake in LCH, its integration partner, Deutsche Boerse already runs its possess clearinghouse titled Eurex.

The Big Board parent teamed with privately-held business aggregation consort Markit to effort nearly 500 meg euros for LCH, the prototypal maker said.

LSE's offer is valued at 1 1000000000 euros, while Nasdaq's offer is worth 350 meg euros, the FT report said, citing separate sources.

(Additional reporting by Jonathan Spicer in London; Editing by John Stonestreet)


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