MILAN, Dec 17 (Reuters) - The London Stock Exchange
expects to finalise its acquisition of clearing house
LCH.Clearnet within the first quarter of next year, LSE Chief
Executive Xavier Rolet told Italian daily Il Sole 24 Ore on
Sunday.
Britain's competition watchdog on Friday gave a green light
to the London Stock Exchange Group Plc's planned purchase of
LCH.Clearnet.
But both parties are back in talks over terms to reflect
higher capital requirements being imposed on exchanges by
European regulators overhauling the financial system after the
banking crisis.
"Capital shortfall for LCH is said to be around 300-375
million euros and it could be even higher, this is why we are in
talks to change the terms of the deal," said Rolet, adding he
expected the deal would be done "into Q1". He said that still
depended on a green light from European regulators.
"We have already put aside the majority of funds we will
need," he said.
A spokesperson for the LSE welcomed the go ahead from
Britain's competition watchdog, but declined further comment.
Under the deal terms agreed in April, the LSE would buy up
to 60 percent of the clearing house for 19 euros per share.
However it would also have to pay 60 percent of the capital
increase imposed by the European Securities and Markets
Authority (ESMA) to LCH.Clearnet. The ESMA may not finalise its
demands until early next year.