The TCI founder has stoked expectations of a bid for London Stock Exchange Group (LON:LSE), Sky News has revealed. The news comes after the fund manager recently lost a battle to retain chief executive Xavier Rolet.
London Stock Exchange’s share price soared in the previous session, jumping 4.97 percent to 3,988.00p, finding support in upbeat comments by Morgan Stanley. The group’s shares have added just under 30 percent to their value over the past year.
TCI founder flags bid for LSE
Sky News reported yesterday that Sir Christopher Hohn, who runs The Children’s Investment Fund Management had told investors last week that consolidation in the exchanges sector was inevitable. Sources familiar with his remarks indicated to the newswire that he predicted that a takeover bid from either CME Group, which owns the Chicago Mercantile Exchange, or the New York Stock Exchange’s parent, Intercontinental Exchange (ICE), was increasingly likely for all or part of the LSE’s business.
The LSE Group has a market value of just over £13 billion, suggesting that with a typical takeover premium attached, any deal involving the entire company could value it at £15 billion or more.
Morgan Stanley weighs in on group
In a separate development, Proactive Investors reported yesterday that Morgan Stanley had issued a bullish earnings preview for LSE ahead of its full-year results on March 2. The analysts said that they expect an ‘upside surprise’ from the FTSE 100 group’s numbers. The broker further noted that volumes across LSE’s secondary markets – cash equity, Italian fixed income and derivatives – were robust in the fourth quarter and this had carried on into 2018 with volumes year-to-date around 20 percent year-on-year on a like for like basis.