London exchange says vote goes on

A handshake may not have sealed the deal...

Under-fire chiefs at the London Stock Exchange (LSE) insist they have no plans to delay the vote next month on merging with their German counterpart.

Shareholders in both the London and Frankfurt stock markets are due to vote on 14 September on proposals to create a new pan-European exchange called iX.

We are not planning to delay it. Our current position is that the vote will be on 14 September

LSE spokeswoman

However there has been a vocal campaign to get the vote delayed, heightened by the surprise takeover offer for the LSE from Sweden's OM Group, owner of the Stockholm exchange.

The Swedish approach was rejected as "derisory" by London's chairman Don Cruickshank.

It has also come to light that the Euronext combination of Paris, Amsterdam and Brussels stock markets made an offer to London to join, an offer which still stands.

Nasdaq may move

Speculation has since been mounting that OM is to launch an £800m hostile bid on Tuesday.

An LSE spokeswoman said of the vote: "We are not planning to delay it. Our current position is that the vote will be on September 14."

This might well have to change if OM makes a formal bid, with LSE likely to be under pressure to delay the vote to fit in with takeover code rules.

A formal bid would be likely to prompt other stock markets, such as Nasdaq and New York Stock Exchange, to consider making their own moves on London.

Bosses at the Frankfurt exchange said they would be ready to improve the terms of the merger to provide a "white knight" offer to London.

Flawed proposals

Attention on Tuesday is likely to focus on OM chief executive Per Larsson, who said during the weekend that he was "determined that the London market should have a better alternative to the flawed iX proposals".

OM offered £20 in its own shares plus £7 in cash per LSE share, valuing the LSE above its present market price of £23.50 per share.

OM was formed two years ago following a merger between the Stockholm exchange and derivatives markets, and is now worth £2.6bn.