NEX rockets after CME Group makes takeover approach

NEX Group shares shot up to an all-time high after the inter-dealer broker, formerly known as ICAP, confirmed overnight that it has received a preliminary approach by US giant CME Group regarding a potential takeover.

"Discussions are at an early stage and there can be no certainty that an offer for NEX will be made, nor as to the terms of any offer, if made."

Shares in NEX, where founder Michael Spencer sold the ICAP voice broking business for £1.3bn to Tullet Prebon to create TP Icap, rocketed 30% up to 868.5p on Friday.

Broker Numis said the company is an appealing acquisition target as financial infrastructure businesses continue to consolidate. Analysts highlighted London Stock Exchange as being a strong candidate as a suitor or Deutsche Borse, or Singapore’s SGX, which could imply these talks may encourage other lurkers to make a move.

Numis said its 800p target price reflected "a possible offer, expected to be at a premium to the current share price" and that it would "await further developments".