July 15, 2009 / 10:53 AM / 11 years ago

LCH rejects group's offer, talks continue-sources

LONDON, July 15 (Reuters) - The board of LCH.Clearnet last month rejected a bid for the clearing house from a consortium led by ICAP IAP.L due to concerns about the details of the business plan, two people familiar with the matter said.

The consortium remains interested and is likely to return with a revised offer around September, one of the sources said.

In May a 14-member consortium including interdealer broker ICAP Plc IAP.L offered 813 million euros ($1.14 billion) for LCH.Clearnet. The LCH board discussed the bid on June 18 but subsequently turned it down, the sources said.

A spokesman for the consortium said it remained in talks with the clearing house and “discussions are ongoing”, but declined to comment on specific details.

LCH declined to comment immediately.

LCH.Clearnet’s management also proposed buying out its 123 shareholders, who would then be invited to reinvest on an equal basis, but that proposal was also rejected by the board, the sources said. ($1=.7118 euros) (Reporting by Daisy Ku; Writing by Steve Slater; Editing by Greg Mahlich)

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