STOCKS NEWS EUROPE-LSE jumps on TMX purchase plan

Wed Feb 9, 2011 8:29am GMT

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Shares in London Stock Exchange (LSE.L) jump 9 percent and reach their highest since October 2008 on news that it is set to buy TMX Group (X.TO) the owmer of the Toronto Stock Exchange, with analysts saying it looks to be a good strategic move.

"This deal comes against the backdrop of consolidation in world exchanges and represents the first strategic move by (LSE chief executive) Xavier Rolet and creates a company with a combined market capitialisation of 3.7 billion pounds ($5.95 billion)," Shore Capital says in a note.

"The key benefit is the creation of a global exchange with a strong presence in natural resources and emerging markets and as such we feel it is a positive development for the LSE."

TMX shares in Frankfurt XQ.F trade 2.8 percent higher.

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