LSE tumbles as ICE says it won't be making an offer

London Stock Exchange shares tumbled on Wednesday after Intercontinental Exchange said it has no intention of making a buyout bid for the London-listed company.

ICE, which owns the New York Stock Exchange, had said on 1 March that it was considering making an offer for the LSE.

However, the company said in a statement on Wednesday: “Following due diligence on the information made available, ICE determined that there was insufficient engagement to confirm the potential market and shareholder benefits of a strategic combination.

“Therefore, ICE has confirmed that it has no current intention to make an offer for LSEG.”

LSE agreed in March to merge with Germany’s Deutsche Boerse.

“The market reaction is as anticipated as it eliminates the bidding war, which was expected to continue and with expectations of a higher offer being in the price now we see weakness given concerns re the Deutsche Boerse deal materialising,” said Atif Latif, director of trading at Guardian Stockbrokers.

“The weakness should only be a short-term reaction after the price move eliminates the ICE premium,” he added.

At 1400 BST, LSE shares were down 6.3% to 2,520p.