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TonyGosling
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 Posted: Sun May 29, 2016 1:08 pm Post subject: Proposed German Borse 'merger' with UK Stock Exchange |
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Although being presented as a merger this is a takeover
Former UBS Libor fraud mastermind Carsten Kengetr will be the CEO of the joint exchange company
Merged LSE and Deutsche Börse would be led by Germany’s Kengeter
http://www.ft.com/cms/s/0/34855e82-db11-11e5-98fd-06d75973fe09.html
By Philip Stafford, Arash Massoudi, Patrick Jenkins and Kate Burgess
The European trading giant planned by Deutsche Börse and the London Stock Exchange Group will be based in London but headed by the German group’s chief executive, according to people close to the two sides.
They are set to proceed with plans to make London the domicile for the new holding company, despite the looming June 23 referendum on British membership of the EU, in a boost to the City’s role as Europe’s dominant financial centre.
Carsten Kengeter, a former banker in charge of the German exchange for just over eight months, would be the chief executive of the enlarged company, which would be chaired by Donald Brydon, chairman of the LSE, people close to the talks said.
The potential deal, which both sides confirmed on Tuesday, would pave the way for LSE’s head Xavier Rolet to depart after a seven-year run that has re-established the company among the world’s leading exchanges.
The two companies have already outlined what they call an all-share “merger of equals” that would create a European champion, an indication of the heightened political and regulatory sensitivities of any agreement. Neither side has revealed crucial details, such as future management and the domicile of the combined group.
People close to the matter said a deal could come within two weeks but warned that discussions were not finalised and there was no certainty a deal would go ahead. Both companies declined to comment.
A deal would consummate a 15-year on-off courtship between the two exchanges and create one of the world’s leading providers of trading platforms, risk management and financial data.
With a combined market capitalisation of more than £20bn, the new group would become Europe’s main answer to Chicago’s CME Group, Atlanta’s Intercontinental Exchange and Hong Kong’s HKEx.
The business of exchanges has transformed over the past two decades, moving away from equity trading and into more lucrative products such as derivatives and clearing.
Regulators are likely to subject the deal to close scrutiny because of the dominance the new group would have over European markets.
At least one top 10 investor in the LSE has balked at the structure of the deal under discussion, in which Deutsche Börse would emerge with 54.4 per cent of the new entity.
One said that if Mr Rolet left and the combined group was led by Mr Kengeter, the deal would look more like a takeover by Deutsche Börse than a merger of equals. This investor said the terms offered by Deutsche Börse looked “derisory”.
Investors stand to receive 0.4421 Deutsche Börse shares for each LSE share they own, under the current talks. The investor said that undervalued the company, which traded at £28 at the start of the year and which he believes is worth at least £30 a share in a takeover.
In a tweet early on Wednesday, Mr Rolet said that the “merger of equals” was based on a three-month simple average of both companies share price. The executive added that the deal was “about #CMU [a reference to Europe’s planned capital markets union] and scaling up all European companies.”
Shares in Deutsche Börse gave up their gains from Tuesday and closed down 3.4 per cent at €76.14 in Frankfurt — as investors in the German company questioned whether the exchange was giving away too much to buy its rival.
LSE closed down 3.7 per cent at £25.32 in London.
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Last edited by TonyGosling on Sun May 29, 2016 1:26 pm; edited 2 times in total |
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TonyGosling
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Joined: 26 Jul 2006
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Location: St. Pauls, Bristol, UK
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| Posted: Sun May 29, 2016 1:10 pm Post subject: |
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German resistance grows to London Stock Exchange merger
Marion Dakers Ashley Armstrong 26 MARCH 2016 • 7:50PM
http://www.telegraph.co.uk/business/2016/03/25/german-resistance-grows-to-london-stock-exchange-merger/
The London Stock Exchange’s merger with Deutsche Boerse is coming under fire in Germany, with politicians and industry veterans speaking out against the deal amid fears that Frankfurt’s status as a financial hub will be eroded.
As both exchanges canvass investors about their £21bn merger, the decision to move the combined group’s headquarters to London while giving the German bourse’s chief executive, Carsten Kengeter, the top job has been criticised.
Manfred Zaß, a former Deutsche Boerse director, has warned that the compromises contained within the “merger of equals” could damage Frankfurt’s standing, despite Mr Kengeter’s claims that the deal would safeguard the city while enabling both the UK and Germany to compete in global markets.
Mr Zass, who left the bourse after its failed bid to buy the LSE in 2005, told a German magazine: “We should not be naïve… With respect, if you know the push and pull behind such a merger, it sounds more like an investment banker fairy story.
"The supposed parity – the boss here, the domicile there – creates a recognisably lopsided Frankfurt," he told a German magazine.
Deutsche Boerse’s home district is also lobbying to retain the exchange’s head offices. Ulrich Caspar, who sits in the regional parliament in Hesse, has said he harbours concerns about the majority of the enlarged group’s shareholder base coming from English-speaking countries. “It is the task of the German, Hesse and Frankfurter politicians to ensure that the stock market can continue to develop,” he told the German media.
Mr Caspar was a vocal opponent of Deutsche Boerse’s ultimately unsuccessful plans to merge with NYSE in 2012, part of a global wave of consolidation among financial market operators.
Wilhelm Speckhardt, former mayor of the Frankfurt suburb of Eschborn, has described the plan to shift the holding company to London as “an unimaginable catastrophe for the town”.
Unease among British politicians about the tie-up saw several Commons Treasury committee members suggesting last week that they will quiz executives on the deal.
LSE shareholders will own 45.6pc of the group after the merger, while Deutsche Boerse would get 54.4pc. Xavier Rolet, the boss of the London bourse, will retire as part of the compromise to make the deal an even split.
They expect to save €450m a year, or 20pc of operational costs, by merging overlapping parts of the businesses, on top of ongoing savings programmes.
However, the deal could be interrupted by a rival bid. The American group Intercontinental Exchange has expressed an interest in making an offer for the LSE, while the Chicago Mercantile Exchange and the Hong Kong stock exchange have also been linked to bids.
Meanwhile, advisers to Deutsche Boerse and LSE are said to be looking at the same structure, involving a Dutch foundation called a stichting, that was set up in NYSE’s 2007 takeover of Euronext to contain the risk from new US law, to avoid possible regulatory problems in the event of a Brexit.
Ferdinand Mason of Jones Day, who advised regulators on the implementation of the stichting at the time of the NYSE Euronext takeover, said: “Setting up a stichting would protect companies listed on the LSE and the exchange itself from any overspill of a change in EU regulations.
“Given the uncertainty of the situation I think that this would be a prudent way to safeguard the UK part of the exchanges from any future changes in EU or eurozone related legislation.”
The firms have already set up one Dutch structure without explaining its purpose.
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TonyGosling
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Location: St. Pauls, Bristol, UK
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| Posted: Sun May 29, 2016 1:21 pm Post subject: |
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Was Tom Hayes Running The Biggest Financial Conspiracy In History
Or Just Taking The Fall?
September 14, 2015 — 7:12 AM BST
http://www.bloomberg.com/news/articles/2015-09-14/was-tom-hayes-running-the-biggest-financial-conspiracy-in-history-
UBS Gave Out ‘Instruction Manual on Fixing Libor,’ Hayes Said
Liam Vaughan June 18, 2015 — 12:32 PM BST
Thomas Hayes, a former trader on trial over charges he manipulated benchmark rates, told prosecutors in 2013 that UBS Group AG distributed “an instruction manual on fixing Libor” to suit their trading positions.
The Swiss bank’s e-mailed “Guide to Publishing Libor Rates,” which was shown to jurors by prosecutors in London Thursday, included an instruction for traders to adjust their submissions depending on their “delta/fixing position.”
“If 3m Libor” exposure “is 4,125 this means we are receiving” and “therefore we want to increase the fixing by 25 basis points,” according to the internal UBS guide. “If the number is negative then vice-versa.”
Hayes, the first person to stand trial for allegedly manipulating the London interbank offered rate, told prosecutors the document was evidence that Libor-rigging was standard operating procedure during his time at UBS.
The problem was exacerbated because the managers who oversaw Libor submissions also had large trading positions based on the benchmark, Hayes added.
“This is where what UBS is doing in terms of throwing individuals under the bus is really wrong,” Hayes told the Serious Fraud Office in 2013....
http://www.bloomberg.com/news/articles/2015-06-18/ubs-gave-out-instruction-manual-on-fixing-libor-hayes-said
Former UBS investment bank co-chief 'present during Libor-rigging talks'
Carsten Kengeter, who moved to Deutsche Börse in October, attended meeting where rate manipulation was discussed, court hears
https://www.theguardian.com/business/2015/jun/03/former-ubs-investment-bank-co-chief-present-libor-rigging-meeting
Questions over German stock exchange boss Carsten Kengeter's links to Libor fraudster
By JAMES SALMON FOR THE DAILY MAIL - PUBLISHED: 23:00, 15 March 2016
The German who hopes to run the London Stock Exchange was last night under fresh scrutiny over his links to a convicted fraudster.
Deutsche Boerse’s boss Carsten Kengeter will lead the combined company if its £20billion merger with the LSE Group goes ahead.
But yesterday the battle for control of the London Stock Exchange took on a new twist as Kengeter’s past came back to haunt him.
Before taking the helm of Deutsche last Summer, Kengeter worked at Swiss banking giant UBS, latterly as co-head of its investment bank.
One of his employees at the time was Tom Hayes who was jailed for 11 years for rigging Libor interest rates while working in UBS’s Tokyo office.
UBS was fined £1.1billion by regulators over the scandal in 2012.
Hayes has consistently claimed his bosses, including Kengeter, were perfectly aware of what he was doing and even condoned his actions.
But yesterday it emerged the UK’s criminal watchdog the Serious Fraud Office temporarily included Kengeter on a list of potential co-conspirators in 2013.
The 48-year-old’s name was removed from the list when it was later handed over to Hayes’s legal team before the case went to trial, according to the Wall Street Journal...
http://www.thisismoney.co.uk/money/news/article-3493927/Questions-German-stock-exchange-boss-Carsten-Kengeter-s-links-Libor-fraudster.html
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TonyGosling
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| Posted: Thu Mar 30, 2017 1:37 am Post subject: |
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EU vetos Deutsche Boerse-London Stock Exchange merger deal
http://finance.yahoo.com/news/deutsche-boerse-lse-merger-plans-091736835.html
ReutersMarch 29, 2017
European Competition Commissioner Vestager holds a news conference after EU antitrust regulators blocked the proposed merger of Deutsche Boerse and the London Stock Exchange, in Brussels
European Competition Commissioner Margrethe Vestager holds a news conference after EU antitrust regulators blocked the proposed merger of Deutsche Boerse and the London Stock Exchange on Wednesday as expected, saying that the deal would have harmed competition because of the companies' combined market power, in Brussels, Belgium March 29, 2017. REUTERS/Yves Herman
By Foo Yun Chee
BRUSSELS (Reuters) - An attempted merger between the German and British stock exchanges was struck down by European regulators on Wednesday, formally ending a deal that unraveled in the wake of Britain's vote to leave the European Union.
"We could not approve this merger on the terms ... proposed," said European Competition Commissioner Margrethe Vestager, blocking the 29 billion-euro ($31 billion) deal to combine Deutsche Boerse (DB1Gn.DE) and the London Stock Exchange (LSE.L).
A merger would have created Europe's biggest stock exchange. But the European Commission objected, saying the deal, which was the pair's fifth attempt to combine, would have resulted in a monopoly in the processing of bond trades.
Selling MTS, the LSE's Italian fixed income trading platform, would have removed the Commission's concerns but LSE declined to do so.
"How exactly these markets work and the products traded can seem like rocket science," said Vestager. "But actually our competition concerns with this merger are very simple."
"In some markets Deutsche Börse and London Stock Exchange both provide the same services. And in some of these markets they are essentially the only players and the merger would therefore have led to a de facto monopoly."
The EU rejection comes on the day the British government started proceedings for leaving the European Union, a move which industry sources have said undermined the merger plans.
The Brexit decision had prompted German politicians to demand that the headquarters of the exchange group move from London to Frankfurt, creating a conflict that caused the deal to unravel.
Further complicating the picture, German police and prosecutors had opened an investigation into possible insider trading by Deutsche Boerse Chief Executive Carsten Kengeter, the man who was set to lead the combined group.
"It is always the same," said one Deutsche Boerse manager, commenting on the long saga of the two exchanges trying to join together. "Attempt to merge. Fall on your face. Save up money. Next merger attempt. Fall on your face," he said.
While Wednesday's announcement marks the official end of the deal, there was already no hope left that it would go ahead after the LSE took the unusual step last month of saying it would not accede to EU demands that MTS had to be sold if the deal was to be approved.
Shares in the LSE were up 2 percent at 3,085 pence by 1130 GMT on Wednesday, after it announced a share buyback, while shares in Deutsche Boerse were up 1.7 percent at 83.23 euros.
POWER STRUGGLE
The proposed merger threw a spotlight on clearing, whereby stock, bond and derivatives trades are completed, even if one side of the deal goes bust.
The LSE's clearing arm, LCH, is one of the world's biggest, and the exchange had agreed to sell its LCH's Paris arm to French bourse Euronext if the merger went ahead. That sale will now not happen, the LSE said.
This presents a problem for Euronext, which had opposed the tie up of London and Frankfurt, because it uses LCH in Paris to clear its own share trades under a deal that expires next year.
Euronext Chief Executive Stephane Boujnah said on Wednesday that it was still willing to buy the business.
"But in the absence of obtaining an agreement, Euronext is fully committed to securing the best long-term solution for its post-trade activities," Boujnah said.
LCH in London dominates the clearing of euro-denominated derivatives, an activity some EU policymakers want shifted to the euro zone to come under the supervision of the European Central Bank because Britain is leaving the EU.
The bourse merger could have helped by shifting euro clearing to Deutsche Boerse's Eurex arm in Frankfurt. The collapse of the deal may now prompt the European Union to take action to engineer such a shift.
(Additional reporting by Huw Jones in London and Andreas Kroener in Frankfurt; Writing by John O'Donnell; editing by Philip Blenkinsop, Greg Mahlich)
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Secret Rulers https://www.youtube.com/watch?v=h0p-e2ng0SI
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TonyGosling
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Posts: 1417
Location: St. Pauls, Bristol, UK
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TonyGosling
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Joined: 26 Jul 2006
Posts: 1417
Location: St. Pauls, Bristol, UK
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| Posted: Fri Mar 31, 2017 2:14 am Post subject: |
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Proof of how politicised privatisation of stock exchange have become
German lawmaker warns U.S. exchanges against Deutsche Boerse bids
https://www.yahoo.com/news/u-exchanges-warned-against-deutsche-104300742.html
Reuters March 30, 2017
The plaque of the Deutsche Boerse AG is pictured at the entrance of the Frankfurt stock exchange
By Anjuli Davies and Huw Jones
LONDON (Reuters) - U.S. stock exchanges should not attempt to buy Deutsche Boerse (DB1Gn.DE), the German exchange whose bid to merge with its London counterpart has just collapsed, a senior German politician said on Thursday.
"Deutsche Boerse is not only a private company but it also has state responsibilities," Thomas Schaefer, finance minister for the German state of Hesse, told reporters.
"The stock exchange authorities of Germany have to guarantee that if there is a change of owner, it has to guarantee that business has to continue uninterrupted as normal and it doesn't matter who makes an offer," Schaefer said.
Asked what his response would be if a U.S. exchange like ICE (ICE.N) stepped in to bid for Deutsche Boerse, Schaefer replied: "I would rather recommend colleagues in America not to attempt to do this."
Hesse regulates the financial center in Frankfurt where Deutsche Boerse is based, and also has a veto over any merger involving the exchange.
The European Commission on Wednesday vetoed a planned tie up between Deutsche Boerse and the London Stock Exchange Group (LSE.L), saying it would have reduced competition in fixed income markets.
In 2012, Brussels also vetoed a merger between Deutsche Boerse and NYSE Euronext, the U.S. exchange which ICE later acquired.
The collapse of the latest merger effort has triggered speculation of fresh attempts at consolidation among exchanges, with Singapore Exchanges (SGXL.SI) looking at tie-ups abroad, according to media reports on Thursday.
FRANKFURT TO GROW
Schaefer was in London to visit financial institutions and regulators as Frankfurt hopes to benefit from banks in London having to beef up their continental bases to continue serving clients after Brexit.
"We believe Frankfurt will grow," Schaefer said.
However, he expects that the Brexit "cake" will be divided among several financial centers in the EU.
Insurance market Lloyd's of London [SOLYD.UL] said on Thursday it has chosen Brussels for its European Union subsidiary because of its strong regulatory framework.
Schaefer said he believed banks would make decisions in principle over the next three to six months on where to set up new entities and relocate.
He also met with the European Banking Authority (EBA), which will have to relocate its headquarters from London, and noted that the European Commission has proposed that it is merged with the European Occupational and Pensions Authority, which is based in Frankfurt.
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Secret Rulers https://www.youtube.com/watch?v=h0p-e2ng0SI
http://www.thisweek.org.uk
http://www.dialectradio.co.uk
http://www.911forum.org.uk |
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