Deutsche Börse to reduce support level for London Stock Exchange deal

Mega-merger: Traders work under the index board at Deutsche Börse

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11 July 2016

Deutsche Börse was set to reduce the level of support it needs from its own shareholders for its €25 billion merger with the London Stock Exchange.

The deal, which was resoundingly backed by LSE shareholders last week, needed the support of 75% of the Frankfurt-based German exchange’s investors.

But the two sides said: “The parties involved are currently evaluating a potential lowering of such minimum acceptance threshold with a view to enable index funds to participate in the offer.”

Tracker or index funds currently own up to 15% of Deutsche Börse. They can only technically tender their shares in return for those in the enlarged, merged group once the minimum acceptance level (75%) has been reached.

The deadline for this is tomorrow and reports said there had only been 28% acceptance by last Friday.

But most institutional shareholders do not formally accept offers until the final day so the minimum acceptance level is unlikely to be achieved in time for tracker funds to follow suit.

Deutsche Börse is said to be looking at reducing the minimum acceptance level to 60%, which would, in effect, take the tracker funds out of the equation.

Sources said the developments were “a mere technicality”.

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Deutsche Börse to reduce support level for London Stock Exchange deal

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