P.O. (BBG) Don’t Blame Italy for LSE-Deutsche Boerse Deal Flop, Rome Says


I  refer you to my numerous Personal Opinions on this issue.

This deal was dead even before it was was born.

Please consider the facts:

According to the proposed deal the UK would be effectively selling the London Stock Exchange, which is one of it’s Crown Jewels, and the heart of the City, to it’s historic enemy Germany.

The City accounts for more than 25% of the UK’s GDP.

And the UK would be selling it’s heart and command to Germany, it’s arch-rival and the de facto leader of the EU which the UK decided to leave…

And Germany being the Member State that proposes the hardest terms and conditions for the UK’s exit.

And what a suicidal idiocy it would have been!

Francisco (Abouaf) de Curiel Marques Pereira

(BBG) Italian regulators say they’re not responsible for Deutsche Boerse AG’s all-but-dead acquisition of London Stock Exchange Group Plc, a failure that would add to the already sizable graveyard for such merger attempts.

LSE said Sunday that a regulator-required divestment of its MTS trading platform in Italy — after dialogue with officials there — was one step too far, making the deal unlikely to
proceed. But LSE made that decision on its own, and authorities in Rome were never asked to authorize the sale, a spokesman for the Italian Finance Ministry said Wednesday.

LSE declined to comment beyond Sunday’s statement.

Fingers are being pointed as the companies reckon with the likely demise of their year-long attempt to create Europe’s biggest exchange operator. While shareholders have backed the
deal, approval by antitrust regulators in Brussels has been one of the the biggest hurdles.

LSE said it couldn’t sell fixed-income platform MTS, which plays an important role in trading Italian government bonds. Based on talks with Italian officials, LSE said it was “highly unlikely” that a satisfactory sale could be achieved and that such a move would hurt its relationships with those regulators. Politico first reported Rome’s stance.

LSE also cited other factors behind its decision not to try to sell MTS. The London exchange company pointed to the platform’s “systemic” importance in Italy and the importance of LSE’s overall Italian operations to its revenue.

Deutsche Boerse, meanwhile, was prepared to sell MTS and didn’t see the divestment as a problem, according to people familiar with the plans. An official at Hesse, which has a say
in any Deutsche Boerse merger, said the MTS story might have even been an LSE excuse to end the deal talks and blame European regulators instead.

German officials have remained steadily opposed to the companies’ plan to base the new company in London. The headquarters issue became more urgent after Britain’s Brexit
vote, Hesse premier Volker Bouffier said Tuesday.

Deutsche Boerse Chief Executive Officer Carsten Kengeter on Wednesday said he “regrets” LSE’s decision that will likely end their proposed combination, adding that the company is still looking for ways to climb to the top of the industry.

“Standing still is not an option,” the CEO said, echoing remarks he made before the $13 billion takeover’s near collapse over the weekend.