The London Stock Exchange (LSE) may go for a consensus vote on its controversial £21 billion merger with the Frankfurt rival before the EU referendum for Brexit on June 23. The controversy takes place following probable control of German hands over the cornerstone of Britain's free trading economy for 215 years.
The LSE board has announced on Wednesday a deal merging this historic institution with its rival in Frankfurt, the Deutsche Boerse. Under the proposed deal, Germans will have the upper hand since the new organization will be run by the head of the Frankfurt exchange. Shareholders from that exchange will enjoy controlling 54.4% of the stock and calculate profits in Euros, reports Forbes.
Meanwhile, LSE Group and Deutsche Boerse have been pressing ahead intending to head off rival bids from the US. Both the sides expect a break with convention through holding vote before the merger gets green light from competitive authorities.
Both the exchanges are affirmative in joining forces even though the Britons vote for Brexit. Donald Brydon, the LSE Group chairman has hit out at critics of the deal while stressing it as a merger of equals rather than a takeover, according to a report published in This is Money while covering his interview. However, Carsten Kengeter has apparently tried to uphold European sentiment while warning for American control over LSE. He observes the merger deal as the best chance of Europe's bourses competing on the world stage, reports The Telegraph. The clock is ticking in Europe not just for the LSE but also for Deutsche Boerse, adds Mr. Carsten. He has also warned that unless strengthening quickly, LSE may eventually get so weak to act while finding no other option but to react. However, some Britons react sharply against possible hand-over of control into American or German hands. Though some argues in favor citing control over the LSE as less important compared to investment and funding opportunities. They consider the debate over which group of capitalists own that most capitalist of organizations, a stock market, as completely irrelevant. However, some analysts observe the argument as absurd since the debate is over capitalism which leaves no space for nationalist emotions. They have also suggested for concentrating upon money only since worried investors may even boycott LSE simply to avoid the unnecessary and irrelevant debate.
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