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So following on from this, where does this leave us? https://twitter.com/staffordphilip/status/1304450481272610816
Firstly, Borsa Italiana, worth circa E3.5bn, is beyond both DB and Euronext's existing cash piles.
- DB can't go into debt because it owns Clearstream and it needs to keep its top credit rating
- CDP will need to put money in, if it is to become Euronext shareholder
- DB can't go into debt because it owns Clearstream and it needs to keep its top credit rating
- CDP will need to put money in, if it is to become Euronext shareholder
Therefore, I'd expect both to include shares as part of their offer
Exchanges valuations have fulled rebounded since March; LSE is using shares for Refinitiv, ICE used shares to part-fund Ellie Mae deal.
Exchanges valuations have fulled rebounded since March; LSE is using shares for Refinitiv, ICE used shares to part-fund Ellie Mae deal.
- Six is rumoured (they've not confirmed) but would surely be outsiders.
For start, only just started integrating Spain's BME. Adding in BI to the mix would be tough. Still, if a decent asset comes up, you have to look.
For start, only just started integrating Spain's BME. Adding in BI to the mix would be tough. Still, if a decent asset comes up, you have to look.
But also consider the statement from Italian finance minister Gualtieri this week:
"My hope is that Borsa Italiana will find its strategic place within the euro zone’s single market"
"My hope is that Borsa Italiana will find its strategic place within the euro zone’s single market"
As Switzerland is out of the EU and Brussels has issues with Berne on stock exchange equivalence, doubtful EU politicians want to see it go there.
Should the LSE care? It's job is to get the best deal for shareholders. Yes. Sale of Borsa Italiana is predicated on getting approval for its Refinitiv deal. If it's blocked, this side deal is likely off too.
That happened in 2017 with Deutsche Borse merger, (LCH SA sale to Euronext agreed, never happened).
Stock exchange deals are as much about diplomacy as economics.
Stock exchange deals are as much about diplomacy as economics.
