LSE trims LCH.Clearnet offer amid capital changes

[December 26, 2012]  LONDON (AP) -- London Stock Exchange PLC has reduced the value of its bid to buy up to 60 percent of European clearing house LCH.Clearnet to take into account new capital requirements being imposed by regulators.

The Exchange said Monday that its offer values LCH.Clearnet at a provisional euro15 ($19.83) a share, down from the March offer of around euro20 a share. The overall value of the deal was not disclosed.

It said the reduction was based on the assumption that LCH.Clearnet will have to raise euro300 million in new capital. LCH.Clearnet is currently in discussions with regulators about how much It needs to raise to shore up its capital base.

The offer for LCH.Clearnet, which clears trading deals, including risky derivatives, has been extended to the end of January.

[Associated Press]

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