Shareholders give LSE green light for $2.7 billion Frank Russell deal
Reuters
Published Sep 10, 2014 11:50
Shareholders give LSE green light for $2.7 billion Frank Russell deal
LONDON (Reuters) - London Stock Exchange Group (L:LSE) said on Wednesday that its shareholders have approved the company's planned $2.7 billion (£1.68 billion) takeover of U.S. index compiler and asset management firm Frank Russell.
Almost all of LSE's investors who voted backed the deal, which is being part-funded by a $1.6 billion rights issue, at a general meeting held on Wednesday.
The number of votes cast represented just over 80 percent of the company's issued share capital, the LSE said.
Europe's oldest independent bourse unveiled plans in June to buy Frank Russell from owners Northwestern Mutual, seeking to move deeper into the U.S. financial services market where half of global assets under management are based.
The deal will give LSE, owner of indexes business FTSE, third place in the booming global market for exchange traded funds (ETFs) - low-cost funds giving an alternative to active fund management - after market leaders S&P Dow Jones and MSCI (N:MSCI).
It will create an index compiler with around $9.2 trillion of assets benchmarked against the performance of its indexes.
LSE has said it is reviewing Frank Russell's asset management arm to determine how it fits with the enlarged group.
The transaction is expected to be completed late in the fourth quarter of 2014 or early in the first three months of 2015.
(Reporting by Clare Hutchison; Editing by Pravin Char)
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.