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LCH.Clearnet Group Ltd. is expected to play hardball in stake sale negotiations with London Stock Exchange Group Plc, analysts told SNL Financial.
LSE said Dec. 19 that it lowered its offer for a 60% of LCH.Clearnet to [euro]13 per share plus a special dividend of [euro]1 for every share accepted after regulators brought in tough new rules raising the minimum amount of capital that clearing houses must hold. In March, LSE had offered [euro]20 per LCH.Clearnet share.
The Bank of England put the squeeze on clearing houses earlier in December, promising spot checks to ensure that adequate investment is made in risk management. Derivatives, credit default swaps and interest rate swaps will have to be centrally cleared in an effort to improve transparency, presenting new revenue opportunities...