OM plans new LSE bid

There could be sleepless nights ahead for OM's bosses

OM, the Swedish stock exchange operator whose hostile bid for the London Stock Exchange failed last year, wants to try again.

We still think that a marriage between OM and the LSE will create the strongest pan-European player

Per Larsson
OM chief executive

But this time, "we will not make a hostile bid," chief executive Per Larsson said.

OM is prevented from mounting another hostile bid under the City's takeover code before the end of October.

"[But] we still think that a marriage between OM and the LSE will create the strongest pan-European player, there is no doubt in my mind, on that basis we would be interested in making a friendly approach."

The planned stock market listing of the LSE in July this year and several changes to its ownership structure would make it easier for OM to secure control of a significant LSE stake, Mr Larsson said, adding that he will contact the LSE's management shortly.

Open for business

"We'll wait for the phone call," said a spokesman for the LSE, Europe's biggest stock exchange, but declined to comment on the viability of a Swedish bid.

Clara Furse says the LSE is open for deals

Last week, when the forthcoming float of the LSE shares was announced, chief executive Clara Furse said the stock exchange was open to corporate deals that would benefit its shareholders and customers.

The float is a push to strengthen the LSE's business and to enable it to participate in cross-border mergers and acquisitions.

Financial muscle

Mr Larsson declined to divulge how much he is prepared to bid for the LSE, though he insisted that raising the cash for an offer would be easy.

The LSE is expected to have a £1.2bn ($1.7bn) price tag when it floats.

"Our share price has come down quite substantially since our last bid but we have been hit as the market has been hit," he said.

"It's more of an issue what money we can raise for an acquisition, and we are in a good position to raise money for the right acquisition."

All or nothing

Mr Larsson stressed that OM, which owns Stockholmsbörsen - the Swedish stock exchange, would not be interested in a small stake in the LSE.

OM boss Per Larsson is not giving up

"Five, 10, 15 percent investments without a clear understanding of where we are moving is really not interesting for us," he said, stressing a major stake or significant cross shareholdings were what he was after.

OM's share price rose 3.68% by 0900 GMT on Monday, having fallen 15.45% since New Year.