Euronext confirms talks with CDP for joint bid on Borsa Italiana

On the 09/11/20 at 7:57AM
Italy's public savings institution Cassa Depositi e Prestiti and the stock exchange operator may join forces for the takeover of LSEG's Italian business.

British market operator London Stock Exchange Group (LSEG) had set 11 September as deadline to submit acquisition proposals for its Italian arm. Euronext has confirmed on Friday morning that it is currently in discussions with Cassa Depositi e Prestiti (CDP) to submit an offer to LSEG for the acquisition of the business and key operational assets of Borsa Italiana. Bloomberg reported on Thursday that Euronext is ready to offer between €3.5bn and €4bn to acquire Milan-based Borsa Italiana.

Euronext has been linked with the acquisition of Borsa Italiana for a few weeks. For LSEG, the sale of Borsa Italiana is a prerequisite to the green light of EU competition authorities regarding its acquisition of market data and services provider Refinitiv.  The group had said at the end of July that it started 'exploratory discussions' which may result in a sale of its interest in Italian state debt issuance structure MTS or potentially the Borsa Italiana group as a whole.

Euronext's offering would include the entry of the Italian public savings institution Cassa Depositi e Prestiti (CDP) in the capital of the pan-European stock exchange operator with a 8% share. Intesa Sanpaolo could be part of the proposal too. Italian financial minister Roberto Gualtieri has met on Wednesday with Euronext's chief executive officer Stéphane Boujnah to discuss a joint bid between Euronext and CDP. Deutsche Börse and Six are said to be candidates to Borsa Italiana's takeover as well.

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