Euronext in talks to pull out of LCH.Clearnet

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).

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.

Comment on this article: computer.weekly@rbi.co.uk

Read more on E-commerce technology

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

SearchCIO

SearchSecurity

SearchNetworking

SearchDataCenter

SearchDataManagement

Close