LONDON (Reuters) - A consortium of 11 banks and interdealer broker ICAP IAP.L has bid 813 million euros ($1.07 billion) for European independent clearing house LCH.Clearnet, a source close to the consortium said on Monday.
The bid, which was submitted Friday, came as the U.S. Depository Trust & Clearing Corp (DTCC) scrapped its $979 million merger plan with LCH.Clearnet, amid talk of regulatory and political opposition to a transatlantic deal.
The 12-member consortium, which already holds more than 15 percent of the voting rights, is offering 11 euros per share for 73.93 million shares of LCH.Clearnet, the source said.
The consortium and ICAP both declined to comment. LCH.Clearnet could not be immediately reached for comment.
A clearing house stands between buyers and sellers of a security, protecting against the default of either party in case they fail to deliver on a trade.
Regulators are pushing for greater use of clearing to provide protection against counter-party risk, especially in the over-the-counter derivatives market, after the financial crisis.
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.PANYX.N and the London Metal Exchange have 10.6 percent.
Members of the consortium include Barclays PLC (BARC.L), Citigroup Inc (C.N), Deutsche Bank (DBKGn.DE), HSBC Holdings PLC (HSBA.L)(0005.HK), JPMorgan Chase & Co. (JPM.N), Nomura Holdings Inc (8604.T), Morgan Stanley (MS.N), Royal Bank of Scotland (RBS.L), Societe Generale (SOGN.PA) and UBS AG UBSN.VX.
Additional reporting by Victoria Howley, editing by Douwe Miedema and Mike Nesbit