The UK’s Takeover Panel has set December 15 as the deadline for the Macquarie Group to make a formal bid for the London Stock Exchange plc, if it intends to do so.
The panel says that following discussions with both parties’ advisers, the panel executive has ruled that Macquarie must, by 5:00 pm on December 15, either announce a firm intention to make an offer for the LSE or announce that it does not intend to make an offer for LSE. No extension to this deadline will be granted, except with the consent of the panel executive.
In the event that Macquarie announces that it does not intend to make an offer for LSE, Macquarie and any person acting in concert with it will, except with the consent of the panel executive, be bound by the restrictions preventing another bid for six months.
Both the LSE and Macquarie accepted this ruling. In response, Macquarie Bank Ltd. issued a statement indicating that it welcomes the statement from the Takeover Panel regarding the timetable for any possible offer, “as providing sufficient time for all parties to consider fully the situation”.
“Since Macquarie first confirmed its potential interest on August 15 2005, it has continued to review the merits of a possible formal approach being made to the LSE Board of Directors,” it says. “The significant increase in speculation since that time as to the future of the LSE, and its impact on LSE’s share price, has made any assessment of the fundamental value of the LSE increasingly challenging.”
“Macquarie maintains its interest in a possible consortium offer for the LSE and believes that it has a clear track record of successful long-term ownership and development of infrastructure and regulated businesses,” it says. “At any particular time, however, Macquarie reviews a broad range of potential investments. In doing so, Macquarie takes a disciplined approach to valuation and will only invest in businesses where value exists for its investors and other stakeholders concerned. As a result, there can be no assurance that any offer will be made for the LSE and a further announcement will only be made as appropriate.”
http://www.thetakeoverpanel.org.uk/new/
UK regulator sets deadline for LSE bid
Macquarie must submit formal offer by December 15
- By: James Langton
- November 23, 2005 November 23, 2005
- 10:10