board of the Borsa Italiana SpA has accepted the offer by the London Stock Exchange
Group PLC to acquire the Italian stock exchange for just over €1.6 billion,
or $2.1 billion, beating out a rival preliminary offer from the New York Stock
Exchange parent NYSE Euronext Inc., sources familiar with the matter said.
details will be made available through a press release at a later stage, sources
Italiana has authorized its chief executive Massimo Capuano to finalise the all-paper
deal that values the Italian stock exchange at €1.6 billion.
acquisition while giving LSE exposure to the fast-growing derivatives business,
would also help ward off any future takeover attempts by Nasdaq Stock Market Inc.,
which has tried unsuccessfully to buy LSE twice and still holds about a 30 per
cent stake in LSE.
Italiana board unanimously agreed to the takeover, people familiar with the matter
said. However, a final deal needs approval by the LSE''s shareholders.
Italiana didn''t present a late indicative offer by NYSE Euronext to its board,
although the offer was potentially valued at as much as €300 million more
than LSE''s offer.
members were, however, made aware of the competing proposal, sources said.
running feud between NYSE Euronext and Borsa Italiana seems to have swinged the
deal in favour of LSE. The Italian bourse backed out of talks to join with Euronext
last year and tried to strike a deal with German exchange Deutsche Börse
AG, which was at the time competing with NYSE Group.
Borsa Italiana also expected to have a greater say at the LSE than at the much-larger
NYSE Euronext, and considered the cultural fit to be better with London than New
tie-up plan envisages a board with LSE naming seven directors and Borsa Italiana
combine will be headed by LSE chief executive Clara Furse, with Borsa CEO Massimo
Capuano taking the deputy role, according to people familiar with the matter.
LSE chairman Chris Gibson-Smith will remain chairman at the combined company.
LSE-Borsa Italiana combine will be the largest stock market in Europe, trading
international giants like mobile-phone company Vodafone Group PLC, oil company
BP PLC and industrial power Fiat SpA.
also will inherit a trade-processing, or clearing-and-settlement,
business, even though it has been a vocal opponent of exchanges owning both trading
and post-trading services.
NYSE Euronext offer is at a preliminary stage and could be restructured, according
to the Wall Street Journal. NYSE Euronext is the parent of the New York