Exchange's iX plan is 'unworkable'

By THIS IS MONEY
Updated:

 

A report commissioned by Merrill Lynch, one of the London Stock Exchange's advisers, is reported to have declared that the LSE's proposed merger with Deutsche Boerse to form iX is 'almost unworkable'.

On Wednesday, shares in LSE rose above the value of Sweden's OM Gruppen's hostile offer, as investors indicated they expect a counter-bid.

Merrill's study reportedly found that benefits of integrating the two exchanges would not be delivered for some time. It questioned whether the plan would deliver the cost benefits that the LSE claims, and said that the merged exchange would have high operating costs.

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