Oct 29, 2001

LIFFE Board Recommends Euronext Deal to Its Shareholders

LONDON, Monday, 29 October, 2001 -- The Board of the London International Financial Futures and Options Exchange (LIFFE) announces that it will be unanimously recommending to its shareholders that they accept an offer of £18.25 per share from Euronext. The highlights of the offer and the proposed combination of LIFFE and Euronext include:

  • £18.25 in cash per LIFFE share, valuing the Company at £555m (€892m)
  • London to become the European hub for Euronext’s derivatives business enhancing the value of the existing Euronext business
  • Euronext’s derivatives business to be migrated to the LIFFE CONNECT™ trading platform, which will materially increase LIFFE CONNECT™ volumes
  • Led by Hugh Freedberg, LIFFE’s management team to assume responsibility for all of Euronext’s derivatives business, complemented by Euronext management talent


As a result of the process it has run, the Board has unanimously decided to recommend the Euronext offer. The Euronext offer provides a number of key benefits:

  • Shareholder value - 112% premium in cash to the pre-process share price (27 September)
  • Business Case - Euronext shares LIFFE’s views about the growth potential of global derivatives markets. The Euronext business case is clear, compelling and ambitious
  • Technology - Euronext’s decision to adopt the LIFFE CONNECT™ trading platform across all of its derivatives business extends the reach of LIFFE CONNECT™ to a wider customer base across Europe. Moreover, customers of both exchanges will have access to a broader range of products
  • Customer choice - over time, it is expected that customers will be able to choose to clear transactions in multiple locations in multiple currencies


Hugh Freedberg, LIFFE’s Chief Executive, said: “This is the right result for LIFFE and for London and we believe it will be welcomed by shareholders and customers alike.”

Sir Brian Williamson, LIFFE’s Chairman, said: “From its inception LIFFE has always endeavoured to be outward in aspect and international in character. This move continues our strategy to use technology to develop our business. After notable successes in New York and Tokyo, this adds a further dimension in the fast-developing European arena and is good for all users of derivatives markets.”