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LCH.Clearnet looking to defend independence -FT

Wed Mar 4, 2009 10:09pm EST

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LONDON, March 5 (Reuters) - Europe's top securities clearing house, LCH.Clearnet, is looking to buy out its shareholders and convert to a user-owned utility to defend its independence, the Financial Times reported on Thursday.

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Citing sources familiar with the matter, the newspaper said LCH.Clearnet's roughly 120 shareholders could then reinvest in the clearing house after the conversion.

Last October, U.S. clearing house the Depository Trust & Clearing Corp offered 739 million euro ($926 million) for Anglo-French LCH.Clearnet to create a transatlantic clearer. The DTCC is due to sign final terms on March 15.

A consortium of banks set up by interdealer broker ICAP (IAP.L) is mulling a cash counterbid, which also has the backing of the London Stock Exchange (LSE.L). ($1=.7977 Euro) (Reporting by Matt Falloon; Editing by Lincoln Feast)

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