LSE Trims LCH.Clearnet Offer
The London Stock Exchange Group has revised downward its offer for an up to 60% stake of clearing house LCH.Clearnet, the latter said in a press release. The LSE reduced its bid to 15 euros ($20) per share, down from the 20 euros ($26) it initially offered this past March.
Additionally, LCH.Clearnet said that the two parties had extended the deadline to finalize the buyout agreement to Jan. 31, from Dec. 31.
LSE's price reduction is due to new regulations handed down by European authorities regarding capital requirements for clearing houses, particularly concerning default risks. The revised requirements would increase the capital such organizations must set aside for these types of risks.
The article LSE Trims LCH.Clearnet Offer originally appeared on Fool.com.Eric Volkman has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.