The London Stock Exchange’s shares rose sharply as analysts said the LSE could find itself vulnerable to a takeover bid if its planned tie-up with Toronto’s TMX share market unravels.
That became a possibility after a group of Canada’s biggest banks and pension funds made a counter offer for TMX to prevent it falling into foreign hands.
Their preliminary bid is 2.6 euros compared with the LSE’s 2.1.
TMX has already agreed to be taken over by the LSE , which said on Monday that it remained committed to the tie up.
The London exchange has been a takeover target before. In 2004, Deutsche Boerse made a 1.3 billion pound offer for the LSE, while in 2007 Nasdaq failed in a hostile bid for the British bourse.
In related news – Nasdaq and IntercontinentalExchange said they are withdrawing their bid for rival exchange NYSE Euronext, saying it became clear they would not win approval for the deal from the Department of Justice’s antitrust division.
The withdrawal of the offer removes any doubt around NYSE Euronext’s plans to sell itself to Deutsche Boerse for about $10.2 billion (7.2 billion euros).
The NYSE-Deutsche Boerse tie-up is also subject to regulatory scrutiny in Europe and the United States.