Icap confirms LSE merger talks

The future of the London Stock Exchange was back in the spotlight today after details emerged of merger talks involving money broking giant Icap.

While the talks have since broken down, the news will revive speculation over the LSE after almost two years of on-off takeover activity.

The LSE has previously received offers from Australian bank Macquarie and Wall Street exchange Nasdaq – which has since acquired a 25.1% stake in LSE – while the New York Stock Exchange and Euronext also expressed an interest.

It emerged over the weekend that FTSE 100 Index-listed Icap, which specialises in electronic derivatives, fixed income and other money-market broking, held detailed talks about merging with the LSE.

The talks broke down as Icap chief executive Michael Spencer believed the exchange’s share price was too high after recent takeover speculation.

Icap said today: “Following recent press speculation regarding talks between ICAP and the London Stock Exchange, ICAP confirms that it has had exploratory discussions regarding a possible merger of the two companies. Those discussions have been discontinued.”