Deutsche Boerse Shareholder Threatens Legal Action Over LSE Bid

by Robin Pilgrim, LawAndTax-News.com, London

19 January 2005

London-based hedge fund, The Children's Investment Fund Management (TCI) has revealed that it plans to launch legal action against Deutsche Boerse if the German exchange does not agree to hold a shareholder vote on its bid for the London Stock Exchange (LSE).

In a statement released this week, TCI (which manages two funds which combined own more than 5% of Deutsche Boerse) stated its opposition to the move to purchase the LSE.

"We have written previously to both Dr Breuer, head of the supervisory board of Deutsche Boerse, and Dr Seifert, CEO of Deutsche Boerse, requesting the confirmation that any offer for the shares of London Stock Exchange would only be made conditional on the approval of a shareholders' meeting of Deutsche Boerse," the group announced, continuing:

"Were Deutsche Boerse a UK company listed on the official list or a Dutch registered company (like Euronext) to make such an offer, shareholder approval would be compulsory under UK listing rules and Dutch law."

The TCI statement concluded by announcing that:

"In the event that our request is denied, we will consider appropriate legal action and pursue our goals at the annual shareholders' meeting of Deutsche Boerse AG which should take place during May 2005."

It emerged on Monday that Deutsche Boerse's supervisory board had approved a cash offer for the LSE, should the German exchange decide to make one.

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