Nex Group jumps as CME buyout rumours build

Nex Group shares popped higher as Square Mile anticipation grew that US exchange giant CME Group will confirm its takeover bid for the London-based trading platform provider.

Earlier in March, Nex confirmed that it has received a preliminary approach by Chicago based CME regarding a potential takeover, saying discussions were "at an early stage".

Speculation in the City on Wednesday suggested CME was shortly to announce an agreed takeover of up to £10 per share that would value Nex, the company formerly known as ICAP, at nearly £3.7bn, the Financial Times reported.

Nex shares were up more than 11% to 985.79p on Wednesday afternoon, having already risen by a third to around on expectations that CME could get entangled in a battle with the likes of Intercontinental Exchange and the LSE Group.

Analysts had speculated at take-out prices ranging from 850p up to 1000p for Nex.

Numis said: "We have previously highlighted that the company would make an appealing acquisition target as financial infrastructure continues to consolidate. We have mentioned LSE as being a strong candidate as a suitor, but other names could include Deutsche Borse, or Singapore’s SGX."