Friday, November 25, 2011

JP Morgan Becomes Largest LME Shareholder

JP Morgan's big to acquire MF Global's stake in the LME is now official, giving JPM an 11% stake in the PM exchange.
The Squid and The Morgue are now the #1 and #2 shareholders of the London Metal Exchange.

* JP Morgan becomes biggest LME shareholder with MF Global shares

* Takeover could mean big changes for the LME

* Floor trading, metals business models could be at stake

LONDON, Nov 24 (Reuters) - JP Morgan has dramatically boosted its influence in the battle to acquire the London Metal Exchange by increasing its stake this week to become the biggest shareholder.
JP Morgan Chase now has stronger input into any changes proposed by suitors while making a tidy profit from any sale, but retains the option to team up with others to block a takeover, analysts and industry sources said.
The U.S. investment bank won a bidding process to buy a 4.7 percent stake in the LME, the world's dominant market for industrial metals trading, held by defunct broker MF Global Holdings.
The sale gives JP Morgan a stake of 1.4 million shares or 10.9 percent, jumping ahead of the former dominant shareholder, Goldman Sachs, which owns 9.5 percent.

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