ICE confirms considering offer for London Stock Exchange

Worldwide operator of global exchanges and clearing houses Intercontinental Exchange Inc (NYSE:ICE) has just confirmed that it ponders making a bid for London Stock Exchange Group Plc (LON:LSE).

The move comes on the heels of merger talks between the LSE and Deutsche Boerse last week to create a European trading powerhouse that could better compete against USA rivals encroaching on their turf.

Intercontinental Exchange (ICE), based in Atlanta, said it has not yet approached the LSE’s board and no decision has yet been made on whether to pursue a bid.

Bloomberg said ICE is unlikely to enter the fray before March 22 – the deadline for Deutsche Börse to submit a formal offer the LSE.

The companies said Friday the combined group would be domiciled in London with a head office in both London and Frankfurt. In 2007, the Chicago Mercantile Exchange prevailed in its quest to buy the Chicago Board of Trade over an unsolicited $11.8 billion offer from ICE. Robey Warshaw is the lead adviser for LSE, while Perella Weinberg is the lead financial adviser to Deutsche Boerse.

A spokesman for LSEG declined to comment. An ICE-LSE combination would not likely face the same issues. And in October, Sprecher expanded its data- services business with the $5.2 billion acquisition of Interactive Data Holdings Corp.