LSE confirms Deutsche Boerse might lower minimum acceptance threshold for merger

The London Stock Exchange noted the announcement from Deutsche Boerse that it was considering lowering the minimum acceptance threshold for its shareholders to tender their shares which had been set at 75%.

LSE said the rationale behind the decision was to allow index funds, which accounted for roughly 15% of Deutsche Boerse´s shareholders, to tender their shares, as they were only able to do so once the minimum threshold had been reached.

"The parties involved are currently evaluating a potential lowering of such minimum acceptance threshold with a view to enable index funds to participate in the offer," LSE said in a statement.

The Wall Street Journal first reported the possible lowering of the threshhold on 10 July, explaining that if such a decision were taken it would be the "strongest sign yet" of just how committed both companies were to a tie-up.

Over recent weeks some observers had speculated that the merger between the two stock exchange operators might yet be scuppered as a result of the Brexit vote.

Some of Deutsche Boerse´s largest shareholders told the Journal they still saw a strategic rationale for a merger but were unsure of how the UK´s exit from the European Union might affect the combined companies.

Nonetheless, people familiar with the matter also told the Journal that Deutsche Boerse was optimistic that it could win over the owners of more than 75% of its equity.

As of 8 July roughly 25% of Deutsche Boerse´s shares had been tendered.