Friday, October 16, 2009

Deutsche Boerse is prepared to make an offer to buy the Warsaw Stock Exchange


Deutsche Boerse AG is preparing to make a definitive proposal to acquire controlling stake in the state of the Warsaw Stock Exchange (WSE) in the current month, reports the agency Bloomberg.

"We are still in the process of a comprehensive study of the company, its financial condition and market position, - said Frank Herkenhoff, a spokesman for the German stock exchange, today, in an interview. - We are on the way to filing the application.



London Stock Exchange refused to fight for the right to purchase shares of WSE, so that the acquisition "is not consistent with the new company strategy", Financial Times reported today, citing people familiar with the situation. Now, among the contenders for the largest exchange in Central Europe, in addition to Deutsche Boerse, leaving only the U.S. NYSE Euronext and Nasdaq OMX Group Inc.

Poland sells 74% stake in the exchange, while 23% of the securities will remain its members and brokers, while a controlling stake will go to investors. The move is part of the government to raise 36.7 billion zlotys ($ 12.9 billion) from the sale of state property until 2010 Poland These funds will be needed to finance the rising against the backdrop of economic crisis, the budget deficit.

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