European exchange Euronext is believed to be in talks to
sell its 41.5% stake in LCH.Clearnet back to London Clearing House
for Euros 500m (£335m).
The talks, reported in the Daily Telegraph, come only a
few months after LCH.Clearnet’s failure to develop an integrated IT
platform in the three years since the company was formed by a
merger between London Clearing House and Clearnet.
The technology problems led to massive cost write-downs,
boardroom rows and the resignation of chief executive David Hardy
in July, two months after the departure of chair Gérard de La
Martinere.
Consolidation of the firm’s 30 legacy systems had been expected
to produce “significant savings” – a key factor in the original
merger.
The reported talks are understood to centre on Euronext selling
back all its shares in the firm to LCH. The shares would then be
cancelled – a move that would boost the stakes of LCH’s other
shareholders.
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