LONDON (Reuters) - The management of LCH.Clearnet, Europe’s top independent clearer, wants to combine its own restructuring plan with a takeover offer from a consortium of 11 banks and interdealer broker ICAP IAP.L.
“We think the two proposals have a great deal in common and we hope we can find some way to synthesise the two,” LCH.Clearnet chairman Chris Tupker said in a statement.
LCH.Clearnet management has proposed buying out the clearing house’s 123 shareholders who would then be invited to reinvest on an equal basis.
A 12-member consortium has bid 813 million euros (730.7 million pounds) for LCH.Clearnet, a source close to the group said on Monday. It has previously opposed the clearer’s restructuring plan, saying that could end up with 50 shareholders — a structure that would thwart any hope of a shake-up.
The consortium, whose members are mostly shareholders of LCH.Clearnet, has offered 11 euros per LCH.Clearnet share. There are 73.9 million shares.
LCH.Clearnet management hopes offering control of the board and plans to restructure part of its technology platform to save 28 million euros and further cuts in clearing fees could be good enough terms for the consortium to consider, according to a Financial Times report on Wednesday.
A consortium spokesperson was unavailable for comment.
Banks own 73.3 percent of LCH.Clearnet, while Euroclear holds 15.8 percent and exchanges including the London Stock Exchange (LSE.L), NYSE Euronext NYX.NNYX.PA and the London Metal Exchange have 10.6 percent.
LCH.Clearnet clears cash equities transactions executed on the LSE’s UK order book and NYSE Euronext; over-the-counter fixed income and repo trades; soft commodities and metals derivatives as well as credit default swaps (CDS) through a joint venture with NYSE Liffe.
(Reporting by Daisy Ku; Editing by Dan Lalor)
$1 = 0.7336 euro