NYSE eyes LSE - again

This time last year, at Davos, John Thain, the chief executive of the New York Stock Exchange, expressed a strong interest in acquiring a European exchange, with the London Stock Exchange high on its list of potential targets.

Today, at Davos, Mr Thain, refused to rule out a takeover approach to the LSE, if the current bid from its American rival Nasdaq fails. Over breakfast, he said that a strong case could be made for the merger of the world's two strongest exchange brands, the NYSE and LSE, and could see greater long-term benefits in a tie-up.

He is already well on the way to making good last year's pledge. The NYSE is now close to completing its $10.2 billion (£5.2 billion) agreed merger with Euronext, which operates exchanges in Paris, Brussels, Lisbon and Amsterdam. The bid was launched in June last year.

More on the story here.

Have your say on what the future of the London Stock Exchange should be below.

Comments

[Nizam Balkhi]

Having seen LSE's growth in the last 10 years and the potential of London becoming the financial capital of the world it is easy to see US SE interests in LSE.

LSE should hang on against any premature takeovers in light of long term benefits of becoming a financial epicentre. LSE is becoming first in choice for international businesses. In light of deep political influence in the US on business sector and vice versa as seen in the example of online gambling and strict visa controls and lapse of information liberties makes many people nervous.

Unless the political/business front in the US sees a dramatical shift (thats dramatical not democratical) it is hard for Fund Managers/Investors like myself to risk going anywhere else but LSE where we hope liberties remain respected and we grow LSE and london in becoming truely the worlds financial capital.

[Alex]

There's no reason that the NYSE or NASDAQ need to take over the LSE at all. There is no advantage for either side here.

[sandy frith]

There is a need for some things in the UK to remain British. As the Norris case has shown, US financial laws are already risking London's standing as a place to do business. There can not be anybody who doesn't believe that US control of the UK bourse will not mean the import of US financial laws?

[Robert C]

The Feeble hand off approach of the UK Government in letting UK assets being sold on the cheap without the reciprocal chance for UK Companies to be buy foregin assets!

Lets stop the rot and spend time creating a level playing field.

[Mike Smith]

Are we the most stupid nation in the World? Why are we allowing the UK to be asset stripped? How will we generate wealth in this Country when everything has been sold?

[Simon Roberts]

With the rise of Asia and growing importance of Europe, London has and will increasingly be the preferred place for completing business. All other world stock exchanges over the next 5-10 years will become increasingly marginalised against the London Stock Exchange. There is no need for the LSE to do any deal as it is in the right place in the first place and will be in the best place to become a predator if only other countries played by the same rules as the UK. My only concern is why UK PLC PE ratio is considerably below hat of other countries making the UK look cheap and decreasing its potential to buy abroad using paper? Come on pension funds take your money from bonds and invest in the long term future of UK Plc.