CORRECTED-UPDATE 1-LSE cuts offer price for LCH.Clearnet by a third

Wed Dec 19, 2012 12:22pm EST
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(Corrects value of offer to 312 million euros in first and eleventh paragraphs)

By Luke Jeffs

LONDON Dec 19 (Reuters) - The London Stock Exchange has cut its offer for LCH.Clearnet by almost a third to 312 million euros ($413.7 million), to reflect rising capital requirements, sources familiar with the matter said on Wednesday.

Sources said the British stock market has made a revised offer of about 13 euros a share, down about 6 euros on the deal it agreed with LCH management and shareholders in April.

The deal is important to the LSE because it takes the British exchange further into clearing, a potentially lucrative area, with regulators looking to mandate the use of clearing houses in the wake of the collapse of Lehman Brothers.

The LSE said on Wednesday it was in talks with LCH over the "potential changes to the commercial terms of the transaction" but declined to comment further. LCH also declined to comment.

The reduced offer needs to be accepted by the LCH board and then it will have to go back before LCH shareholders, who are not guaranteed to accept the lower bid, according to analysts.

LCH.Clearnet shareholders include nearly 100 of the world's largest trading banks and two exchanges, the London Metal Exchange and NYSE Euronext.

"It'd be positive if it could secure a price reduction on this scale," said Richard Perrott, an analyst at Berenberg Bank.   Continued...