CORRECT: JP Morgan To Buy 4.7% LME Stake From MF Global For GBP25 Million - Sources
22 November 2011 - 5:51PM
Dow Jones News
J.P. Morgan Chase & Co. (JPM) is buying a 4.7% stake in the
London Metal Exchange from bankrupt broker MF Global Holdings
(MFGLQ) for GBP25 million, three people familiar with the matter
said Tuesday.
J.P. Morgan bought the stake in an auction process handled by MF
Global's administrator, KPMG. The deal will need to have the LME
board's approval before it can be closed, a person familiar with
the matter said.
The deal is expected to be formally announced this week, the
people said.
J.P. Morgan already owns a 6.2% stake in the LME. The recent
purchase, once closed, would increase J.P. Morgan's stake in the
exchange to 10.9%.
The deal values LME's total equity at GBP532 million, according
to a Dow Jones Newswires calculation.
The LME declined to comment on the matter.
-By Francesca Freeman and Alex MacDonald, Dow Jones Newswires;
+44 (0)20 7842 9412; francesca.freeman@dowjones.com