You are here: Home » Opinion » Breakingviews
Business Standard

Flaming MoEs

LSE merger of equal-ness is a red herring

George Hay 

George Hay Mergers of equals are tricky to construct and equally easy to misunderstand. Take the London Stock Exchange's (LSE) potential deal with Deutsche Boerse. Is there a premium? Are they really equals? Is Deutsche Boerse a better owner of the LSE than a US rival? All that is beside the point. What matters most is by how much LSE's shareholders will be better off, and whether that number can be matched by another offer - whatever form that takes. A true merger of equals entails two companies being spliced together at the level of their undisturbed market values prior to the deal, and ...

This article is no longer available in our repository.

There could be multiple reasons for this.

First Published: Sun, March 06 2016. 21:21 IST