The London Stock Exchange has raised its dividend by 20pc as it braces itself for the failure of its proposed merger with Deutsche Boerse. The planned merger with Deutsche Boerse was derailed earlier this week by a last-minute demand from the European Commission. In its preliminary results for 2016, LSE proposed a full-year dividend increase of 20pc to 43.2p per share, saying the move reflected the "strong outlook" for the group. Regulators unexpectedly demanded LSE sell a stake in MTS, an Italian bond trading platform, as a condition of the £21bn merger. LSE also revealed that pre-tax profits had risen from £336.1m in 2015 to £364.1m last year.
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Earlier on Friday, however, the LSE said in a statement that "the group continues to work hard on its proposed merger with Deutsche Börse," according to Reuters. On Monday, the LSE confirmed to POLITICO that it was still very much committed to getting the merger approved, although it did not think divesting the bond platform was a viable solution. On Sunday, the LSE said its board had decided against the divestment from MTS, which the Commission had indicated as a condition for green lighting the merger. "It is up to [the Commission] now to consider the remedies and they will make a decision in due course," the Financial Times quoted Rolet as saying. The tie-up between the two stock exchanges is now widely seen as unlikely to go forward.
A special dividend of 58.2p is due if the deal with Deutsche Börse completes. Rolet would not be drawn on the insider trading investigation into Carsten Kengeter, the Deutsche Börse chief executive who is due to run the enlarged exchange. Xavier Rolet had been expected to step aside to allow his counterpart at Deutsche Börse to take the helm of the combined entity when the deal is completed. The London Stock Exchange chief executive has indicated he is ready to stay on at the company amid expectations that the controversial deal to merge with German rival Deutsche Börse will be blocked by Europe's competition authorities. Announced just months before the EU referendum, the third attempt at merger between the two exchanges was controversial from the outset as it gives Deutsche Börse 54% ownership of the enlarged business but puts its headquarters in London.
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As it stated in
Commission demand on Deutsche Börse merger 'very difficult' – POLITICO
Earlier on Friday, however, the LSE said in a statement that "the group continues to work hard on its proposed merger with Deutsche Börse," according to Reuters. On Monday, the LSE confirmed to POLITICO that it was still very much committed to getting the merger approved, although it did not think divesting the bond platform was a viable solution. On Sunday, the LSE said its board had decided against the divestment from MTS, which the Commission had indicated as a condition for green lighting the merger. "It is up to [the Commission] now to consider the remedies and they will make a decision in due course," the Financial Times quoted Rolet as saying. The tie-up between the two stock exchanges is now widely seen as unlikely to go forward.
LSE chief says he'll stay as EU looks set to halt Deutsche Börse merger
A special dividend of 58.2p is due if the deal with Deutsche Börse completes. Rolet would not be drawn on the insider trading investigation into Carsten Kengeter, the Deutsche Börse chief executive who is due to run the enlarged exchange. Xavier Rolet had been expected to step aside to allow his counterpart at Deutsche Börse to take the helm of the combined entity when the deal is completed. The London Stock Exchange chief executive has indicated he is ready to stay on at the company amid expectations that the controversial deal to merge with German rival Deutsche Börse will be blocked by Europe's competition authorities. Announced just months before the EU referendum, the third attempt at merger between the two exchanges was controversial from the outset as it gives Deutsche Börse 54% ownership of the enlarged business but puts its headquarters in London.
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collected by :Jack Luxor
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