LONDON (Reuters) - London Stock Exchange (LSE.L) head Xavier Rolet has won the backing of LCH.Clearnet’s board to forge ahead with his planned 1 billion euro ($1.3 billion) takeover of the European clearing giant, a source familiar with the situation said.
The board, which is made up of LCH.Clearnet’s largest clients, on Monday chose the LSE’s 21 euro a share bid for 51 percent of LCH over a rival offer from data firm Markit, which offered 15 euros per share for the entire business.
The news was first reported by the Financial Times.
The deal still needs to be signed off by LCH.Clearnet’s 98 shareholders, but the crucial backing is a boost for Rolet as he looks to put behind him the failed bid for Canada’s TMX Group (X.TO) three months ago.
The British exchange tabled a bid in recent weeks in a controversial move to take majority-ownership of Europe’s main independent clearer after it denied in May it was in talks with LCH, when the clearer said it had been approached.
($1 = 0.742 Euros)
Editing by Douwe Miedema