The London Stock Exchange maintains that Deutsche Börse’s offer of not less than 530 pence per share recognises neither the Exchange’s inherent value and growth prospects, nor the substantial synergies available in a combination.
The Board’s confidence in the London Stock Exchange’s strong prospects is reinforced by the record levels of daily trading in January and February. In addition, its current performance will be substantially strengthened by further revenue and cost initiatives which should improve revenues significantly by 2008, and thus deliver increasing value to shareholders and customers. At the same time, the technology roadmap will provide an important step-change in the quality, functionality and scaleability of the Exchange’s market services at significantly lower cost.
As regards synergies, the Exchange notes the marked difference in the estimates announced by Deutsche Börse and Euronext: Deutsche Börse’s estimated annual synergies were €100 million, whilst Euronext has estimated annual synergies of €203 million.
Moreover, the London Stock Exchange holds a unique place in global capital markets and fully intends to achieve for shareholders the value that arises from this position.
As previously stated, the Board believes that a combination, on the right terms, of the London Stock Exchange with another major stock exchange could be in the best interests of shareholders and customers. The London Stock Exchange remains willing to continue discussions with Euronext about the possibility of an offer that fully values the London Stock Exchange and is capable of implementation.
