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ICAP lines up a rival bid for LCH.Clearnet
2 Feb 2009ICAP today confirmed it is working on plans to take over LCH.Clearnet, the back-office share-settlement house in the midst of a sale to a US rival.
The City broking house, led by Tory party treasurer Michael Spencer, wants to offer around €12 a share - about £800 million - for the clearing house. That would top a €10-a-share deal lined up by America's Depository Trust & Clearing Corporation last year.
LCH sits in the middle of stock trades, ensuring bundles of shares are delivered and assuming the counterparty risk meanwhile.
It is largely owned by the big investment banks such as Morgan Stanley, some of whom are said to be part of the ICAP bid.
Responding to weekend reports, ICAP said in a statement today: "ICAP confirms it is an equal member of a consortium of a number of leading financial institutions that is collectively considering a possible cash offer for LCH Clearnet."
