Intercontinental Exchange Opts Not to Bid for London Stock Exchange

By Lisa Beilfuss   Intercontinental Exchange Inc. said Wednesday that it doesn't intend to 

make an offer for London Stock Exchange Group PLC, saying it couldn't confirm the potential market and shareholder benefits of a deal.

London Stock Exchange and Germany's Deutsche Boerse agreed in March to merge in a deal that would establish Europe's biggest stock-exchange operator, posing a formidable challenge to large U.S. rivals.

That pact was thought to set the stage for a potential bidding war, as U.S. competitors such as Intercontinental Exchange and CME Group Inc. considered their next moves.

Analysts and industry executives have said that among the attractive features of LSE, the real prize is its majority stake in a company called LCH.Clearnet Group Ltd., a so-called clearinghouse that plays an important role in the market for global interest-rate swaps, bonds and other instruments.

ICE in particular has made the business of clearing a pillar of its global constellation of futures and stock exchanges.

ICE's announcement came as it reported higher earnings and revenue for its first quarter.

Shares were inactive premarket.

Write to Lisa Beilfuss at [e-mail]

(END) Dow Jones Newswires

May 04, 2016 08:00 ET (12:00 GMT)

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