LSE buys Italian stock exchange

0 Comments | AFP, June, 2007

LONDON (AFP) — The London Stock Exchange confirmed Saturday it was buying the Borsa Italiana for 1.6 billion euros (2.15 billion dollars) in shares, according to a joint statement.

Under terms of the deal, Borsa Italiana shareholders will be offered 4.90 LSE group plc ordinary shares for each existing Borsa Italiana ordinary share, the two bourses said.

Based on share prices and exchange rates of June 19, the offer values Borsa Italiana at 1.634 billion euros and represents a value of 100.7 euros per Borsa Italiana share.

The board of the combined company would have 12 members, seven from the LSE and five from Milan-based Borsa Italiana.

The LSE board believes it will have "more than sufficient support from its shareholders" for the merger.

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