HK Exchanges said to hire banks for LME bid loan

11-May-2012 Intellasia | Bloomberg | 7:01 AM Print This Post

Hong Kong Exchanges & Clearing Ltd (388) hired Deutsche Bank AG (DBK), HSBC Holdings Plc (HSBA) and UBS AG to arrange a loan to finance an offer for the London Metal Exchange, according to a person familiar with the matter, who asked not to be identified because the details are private.

LME, the world’s biggest metals bourse, began a process in September that it said may lead to its sale. CME Group Inc. (CME), NYSE Euronext (NYX) and IntercontinentalExchange Inc. (ICE) were among suitors to submit offers before a May 7 deadline, according to five people with direct knowledge of the matter. Hong Kong Exchanges “continues to participate in the process,” Henry Law, a spokesman for the world’s second-biggest bourse by market value, said in an e-mailed response to questions yesterday.

The LME, founded more than a century ago in London’s financial district, handles about 80 percent of global trading in metals futures and reported record volume of $15.4 trillion last year. The company said May 8 that it received multiple proposals that may lead to it being acquired.

Scott Sapp, a spokesman at Hong Kong Exchanges, declined to comment on the loan.

More than $30 billion of exchange mergers announced since October 2010 failed amid populist outcry, antitrust concern and volatile markets. The LME may be valued at about $1.3 billion, Greenwich, Connecticut-based Equity Research Desk, an adviser to hedge funds, said in February.


Category: Hong Kong

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