Nex Group jumps as CME buyout rumours build

Nex Group

1,129.00p

09:36 02/11/18

0.00%

0.00p

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.

FTSE All-Share

4,415.41

13:05 14/11/24

n/a

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."