UPDATE 3-UK's LSE shares surge on historic $2.7 bln U.S. index deal
* LSE to buy up U.S. indexes group Frank Russell
* Deal will boost earnings in first full year
* LSE to launch $1.6 billion cash call in September
* To draw $1.1 bln from existing and new debt facilities
* Shares up 6 pct (Adds analyst comment, updates shares)
By Freya Berry and Kirstin Ridley
LONDON, June 26 (Reuters) - The London Stock Exchange has unveiled the largest purchase in its history, snapping up U.S. indexes group Frank Russell for $2.7 billion to move deeper into the world's largest financial services market and sending its shares surging.
Europe's oldest independent bourse, which has fought off a string of takeover approaches in its 213-year history, said on Thursday it would help fund the acquisition with a $1.6 billion rights issue of new stock.
It said the move would boost earnings in the first full year after the deal and would catapult it into third position in the booming market for exchange traded funds (ETFs) - low-cost funds that provide an alternative to active fund management - behind global market leaders S&P Dow Jones and MSCI. Continued...