LSE plays tough on merger talk

The London Stock Exchange is prepared to rebuff a merger offer from any other large European exchange unless the deal can deliver clear improvements in costs and liquidity for clients. The exchange believes any other terms would spark an appeal by customers to European competition authorities. It has sought legal advice on how the Brussels competition bodies would view a merger between itself and a large European exchange. The advice concluded that 'on balance' the merger would eventually be approved but the LSE believes any deal would first be subject to a protracted tussle with the European Commission.