Singapore exchange denies LSE merger talks

ALL content used in this not-for-profit blog remain the property of their respective owners.
http://business.asiaone.com/Business/News/Story/A1Story20120721-360445.html

The Singapore Exchange (SGX) denied it was in talks to buy the London Stock Exchange (LSE), a sign there is little appetite for more large cross-border deals after several takeover attempts failed.

The two operators last week agreed to allow their clients to trade blue-chip shares on both platforms, the sort partnership SGX would prefer to costly acquisitions.

'SGX has not engaged in talks with the LSE on a potential merger. However, we are open to collaborations and partnerships which may benefit our shareholders and the company,' the Asian exchange said on Friday.

The statement was a response to a story in Britain's Daily Telegraph, which said the two were in talks about a potential 7.2 billion pound (S$14.2 billion) merger. The story was posted on the newspaper's website on Thursday.

The LSE declined to comment on Friday.

The LSE and the SGX have worked closely together in the past. They jointly bid to buy the London Metal Exchange, the world's largest metals exchange, though they lost out to the Hong Kong Exchange last month.

A deal combining the London and Singapore bourses would have put it behind NYSE Euronext and Nasdaq OMX in terms of number of trades, but a takeover of Europe's oldest independent bourse would have faced stiff regulatory and political opposition.

Based on Thursday's closing prices, SGX is worth US$5.7 billion (S$7.2 billion), while LSE is worth US$4.2 billion, making a combined market capitalisation of US$10.1 billion.

Several big takeover attempts have failed.

The LSE was forced to accept defeat in its 2.3 billion pounds plan to merge with Canada's TMX Group amid shareholder opposition in June last year.

SGX walked away from its proposed US$7.8 billion merger with the Australian Exchange in April last year after the Australian government blocked the trade.