System crashes hit LSE raider

By WILLIAM KAY
Updated:

 

As OM Gruppen, owner of the Stockholm stock exchange, was renewing its takeover bid for the London Stock Exchange it was confronted with the embarrassment that the Stockholm trading system crashed twice today for a total of two hours.

OM blamed the fault, caused by heavy trading in Ericsson shares, on subcontractors, but said its LSE bid 'continues unabated'.

This follows yesterday's LSE vote to keep the maximum 4.9% stake which any single shareholder can own - a move that effectively prevents any full-scale takeover by an outside organisation.

OM chief executive Per Larsson said: 'The level of abstentions and the size of the vote in favour of the resolution show that LSE's board has no clear mandate for its performance or its defence.'

Larsson argued that the LSE vote will not prevent a takeover, on the grounds that if someone makes a bid that the majority want to accept, they will simply change the rules. However, the rule change will require 75% in favour, rather than a simple 51%.

While LSE chairman Don Cruickshank was pleading 'give us another chance', Larsson said the LSE board had made 'a U-turn on strategy, and is still turning'.

OM has raised its offer from £28 a share to £32.

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