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Category: Money

London Stock Exchange Increases its Revenue to 14%

Written on July 20, 2011 by Lulu

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London Stock Exchange is becoming a takeover target, as its bid to a Canadian rival didn't go well.

Since its bid for a Canadian rival collapsed, the is seen as a takeover target. It reported a 14% rise in its first quarter revenue, as its smaller post-trade unit outpaced a steady performance in its core trading business.

The exchange said on Wednesday that revenue for its financial first quarter increased to 190.2 million pounds or $307 million. Revenue in its main markets unit was up from 4% to 79.7 million pounds, as an increase in bond trading linked to the European sovereign debt crisis and more IPOs made up for sluggish trading in equities and futures. While ’s smaller post trade unit showed 58% rise to 51.8 million pounds, and data services increased by 6% to 44.7 million.

With this report, London Stock Exchange Chief Executive – – said that these strong first quarter figures show that they had a good progress.

There still no bid for the LSE since it dropped its high profile $3.5 billion deal for Canadian exchange Group (X.T.O.). However, traders said the U.K. exchange’s stock is trading around a twelve month high on speculation an offer may be pending. U.S. peer Nasdaq OMX (NDAQ.O) or the Singapore Exchange SGXI.SI could be possible buyers.

The LSE declared a friendly merge with TMX in February, though a Canadian consortium named stood against the plan in May. said that the Canadian exchange should not be hand over to any foreign hands. The London Stock Exchange pulled its TMX bid on June 29 due to lack of shareholder support. LSE shares have risen by 17% since go against LSE’s deal, as traders have gambled the U.K. exchange would itself become a takeover target if the TMX deal failed.

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