Deutsche scraps takeover of LSE

SHARES in the London Stock Exchange fell 8% yesterday after Deutsche Boerse scrapped its £1.35 billion takeover proposal and fears grew that a rival suitor may also walk away.

The decision by Deutsche to bow to a shareholder rebellion gives Paris-based exchange Euronext a clear run to launch a formal bid for the LSE.

But LSE shares fell below 500p as the City questioned whether Euronext will be able to generate enough support for an offer, particularly as it shares many investors with its German rival.