It emerged this week that inter-dealer broker ICAP had held merger discussions with the London Stock Exchange (LSE) in an effort to unite the largest money markets dealing platform with the largest equity market in Europe. The Exchange saw ICSAP as an alternative to a merger with NASDAQ, which has acquired a 25% stake in the LSE.
The Sunday Times and the Sunday Telegraph both reported at the weekend that deal talks had been suspended as Michael Spencer, the CEO of ICAP, believed the LSE was too highly valued.
“Following recent press speculation regarding talks between ICAP plc and the London Stock Exchange plc, ICAP confirms that it has had exploratory discussions regarding a possible merger of the two companies,” says Mike Sheard, the Director of Corporate Communications at ICAP. “Those discussions have been discontinued.”