UPDATE 1-LSE says not in talks with LCH.Clearnet

Sun May 29, 2011 7:20am EDT

(Adds detail, background)

LONDON May 29 (Reuters) - The London Stock Exchange (LSE.L) said it is not in talks with LCH.Clearnet, following speculation that it had been one of a number of exchanges that had made a bid for the European clearinghouse.

In a short statement on Sunday, the LSE - the owner of the London bourse - said: "The London Stock Exchange Group (LSEG) notes the recent press speculation regarding it and LCH.Clearnet Group.

"LSEG confirms that it is not engaged in any discussions with LCH regarding a possible transaction."

On Saturday, LCH.Clearnet confirmed it had received "various proposals" from exchange operators interested in some form of business tie-up [ID:nLDE74R065].

A source familiar with the matter told Reuters on Friday that NYSE Euronext NYX.N, Nasdaq OMX Group (NDAQ.O) and the LSE had made offers for the clearinghouse, with the Financial Times putting the LSE bid value at 1 billion euros ($1.43 billion). [ID:nN27140838]

The exchanges are in the midst of a wave of consolidation, with the LSE having agreed a $3 billion bid to buy Canadian peer TMX Group (X.TO).

Clearinghouses stand between parties to a trade to guarantee obligations if there is a default. ($1=.6982 Euro) (Reporting by Rosalba O'Brien; Editing by Jon Loades-Carter)

FILED UNDER: