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Computershare says no to LSE bid

UK
Macquarie
Joint Ventures, Mergers & Acquisitions

(7 October 2005 – UK) Media reports that Computershare was set to join forces with Macquarie Bank to bid for the London Stock Exchange (LSE) have been hosed down by the IT company.Computershare issued a statement saying it had no intention of “investing in or acting in concert with any consortium or any other offeror for the London Stock Exchange”.

The rumours originally emanated from UK broadsheet The Daily Telegraph.

In August, Macquarie said it was willing to invest more than ₤1 billion for the LSE in the face of competition from OM Gruppen which owns the Swedish stock exchange, London’s Euronext and Deutsche Bourse.

LSE, which is listed, has always insisted it would remain independent. However, its share price reached a six month high following the takeover speculation, trading at 20 times estimated earnings for the 12 months to March 2006.

Macquarie said any formal bid would be made as part of a consortium and that it would be made in cash.

Macquarie has 350 staff in its UK operation.

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