LSE bid speculation continues

Market analysts continue to consider what actual bid may eventually take the London Stock Exchange into someone elses hands.

Deutsche Boerse has now been twice rejected, yet investor favourite Euronext has yet to put in an actual bid.

However, Euronext has apparently lined up financing with eight banks, and this has led to speculation of a coming bid in excess of 600 pence per share in LSE.

This would lead to a prospective bid of up to £2 billion.

However, not everyone is convinced - US fund giant Fidelity has already sold nearly 25% of its holdings in the company, suggesting that some investors at least do not expect a bid much different than current share price.

Even still, a bid of 530p per share would be 20 times forward earnings, and there has even been talk that money may be better spent on a lower initial bid, but with a high accompanying buy-back.

Story link: LSE bid speculation continues