Investment markets push against Deutsche Börse

In an unusual move, a second investment company has also voiced concern at the possible second bid by Deutsche Börse to take over the London Stock Exchange (LSE).

Harris Associates, based in Chicago, USA, declared that a “We believe shareholders should have a vote on major acquisitions such as the discussed acquisition of LSE by Deutsche Börse.”

Investment company TCI has already attempted to call an extraordinary general meeting, as it holds a requisite 5% or more in the company, and is therefore entitled to under German law. However, there are suggestions that it may not have held shares in the German company long enough to be able to force a shareholder vote on the matter.

The move in part shows unease with Deutsche Börse chief executive, Werner Seifert, who is noted to have no actual holdings in the company. There are fears in the markets that Deutsche Börse would have to overvalue the LSE to make a successful bid, which would negatively impact existing shareholders in the company.

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