Hong Kong Exchange Shows Interest in London Metal Exchange |
| New York Times - Apr 30, 2012 |
Hong Kong Exchanges and Clearing confirmed on Monday that it was considering a bid for the London Metal Exchange, as the battle heated up for the world’s largest metal-trading platform.
In an open letter to regulators, the Hong Kong exchange said it was one of the potential bidders for the L.M.E. The Asian firm, which is the world’s biggest financial exchange based on market capitalization, joins NYSE Euronext and IntercontinentalExchange in the chase for the L.M.E., according to people with direct knowledge of the matter.
The 135-year-old London Metal Exchange has said a small number of potential acquirers have until May 7 to submit second-round bids.
A pending deal could value the exchange at £1 billion ($1.6 billion). It handles roughly 80 percent of global futures trading for commodities like aluminum, copper and zinc.
Despite the potential high price tag, the Hong Kong exchange has the financial resources to pull off a deal. The firm reported a net profit of 5.1 billion Hong Kong dollars ($657 million) last year, despite a pullback in public offerings in the second half of 2011.
Read Full Article from New York Times
- Posted: 2012-04-30 10:06:32
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