LSE Confirms Rejection Of Australian Takeover Bid

by Robin Pilgrim, LawAndTax-News.com, London

12 January 2006

The London Stock Exchange has reacted angrily to Macquarie Bank's decision to outline the full details of its takeover proposals directly to LSE shareholders, and has again rejected the Australian bank's bid.

In a statement published on Tuesday, the LSE announced that:

"The Board of the London Stock Exchange ("the Exchange") notes the publication today of Macquarie's offer document. Macquarie's offer ignores the quality and strength of the Exchange's business and its long-term growth prospects."

"Macquarie's offer is a blatant attempt to acquire the Exchange on the cheap. The Exchange also announces today, in a separate announcement, its third quarter results which underline the high growth that the Exchange has achieved."

The Board went on to explain that it will be writing to shareholders within the next fourteen days to explain in detail its reasons for rejecting the Macquarie offer.

"In the meantime, shareholders are strongly recommended to take no action in respect of Macquarie's offer," the statement concluded.

When Macquarie first made its 580 pence per share offer, the LSE announced that it rejected "outright this derisory proposal which fundamentally undervalues the Company and lacks any strategic or commercial credibility".

However, the Australian bank is reportedly sticking to its guns, and refusing to make a higher offer in order to attract the LSE's shareholders.

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