Intercontinental Exchange (ICE), owner of the New York Stock Exchange, has said that it will not be making an offer to acquire the London Stock Exchange (LSE) – giving way for the British firm’s planned merger with Deutsche Boerse.
Last month ICE said that it was considering looking at a proposal, but noted at the time that “there can be no certainty that any offer will be made”.
The LSE merger with Deutsche Borse, agreed on 16 March, is set to create one of the world’s largest exchange operators.
The head of ICE, Jeffrey Sprecher, said that LSE’s lack of co-operation was the reason ICE walked away from making a formal offer.
“Following our public expression in March of interest under the UK takeover code, the LSE chairman and CEO did not engage with ICE,” Sprecher said on a conference call.
“We’re turning our focus to other opportunities to build on our track record of growth.”
“The disappointing level of engagement of the LSE ultimately did not allow us to make a complete determination of the integration benefits and their related risks that ICE would require to support a bid,” Mr Sprecher added.
According to LSE, “ICE was provided with all the information that Deutsche Börse had,”
“We are disappointed that a rival and credible bidder has been frustrated due to ‘insufficient engagement’ on behalf of the LSE board,” Jamie Hooper, a fund manager at AXA Investment Managers, was quoted by Reuters as saying.
Shares in LSE plunged nearly 10% after the announcement made by the US based firm, while shares in Deutsche Boerse increased more than 5%.