Deutsche Boerse cuts threshold for LSE merger

Deutsche Boerse has announced that it will cut the threshold for approval among its shareholders from 75% to 60% whilst extending the acceptance period for another two weeks to the 26th of July.

The amendment to the conditions of the merger comes just a week after London Stock Exchange (LSE) shareholders, overwhelmingly backed the planned merger, which create Europe’s biggest exchange.

However, the outcome of the Brexit referendum has raised renewed questions whether regulators and Deutsche Boerse shareholders would back a tie-up which would be headquartered in London,  outside of the EU.

According to Deutsche Boerse, the decision to cut the threshold took place due to a number of institutional index funds only being able to tender their Deutsche Boerse shares after the minimum threshold has been reached.

For example,  for the DAX as the most relevant index the replacement takes place two trading days after 50% of the Deutsche Börse shares have been tendered.

Index funds currently constitute up to 15% of Deutsche Boerse shares.

Mona Dohle
Mona Dohle speaks German and Dutch, she is DACH & Benelux Correspondent for InvestmentEurope. Prior to that, she worked as a journalist in Egypt and Palestine. She started her career as a journalist working for a local German newspaper. Mona graduated with an MSc in Development Studies from SOAS and has completed the CISI Certificate in International Wealth and Investment Management.

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