|
LSE set to name new chief
|
 |
January 23, 2001: 9:43 a.m. ET
Sources: London exchange nears appointment of new boss
|
LONDON (CNNfn) - The London Stock Exchange is close to appointing a new chief executive, sources close to the matter said on Tuesday.
Clara Furse, a former executive at Credit Lyonnais Rouse, the derivatives division of French bank Credit Lyonnais, is the front-runner to run Europe's largest stock market, said one source familiar with the matter. 
The LSE refused to confirm the appointment of a chief executive was imminent, although a spokeswoman told CNN there would be a board meeting "soon."
One industry source told CNNfn.com the appointment will be made this week after an LSE board meeting, likely to take place on Wednesday.
A spokesman for Apcims, the retail stock broker's representative organisation, told CNNfn.com, "We'd be pleased to see the post filled."
Furse, a 43-year-old native of Canada, left Credit Lyonnais Rouse last month after completing a reorganization of its trading systems. She has served as a board member at the London International Financial Futures Exchange (LIFFE), and acted briefly as its deputy chairperson.
The London Stock Exchange's shares, which trade on the internal system of the blue-blooded London broker Cazenove, jumped 4.7 percent to 2,250 pence on Tuesday amid reports about the looming announcement.
LSE left behind in consolidation wave
The exchange has been without a CEO since Gavin Casey resigned last September. He took responsibility for the LSE's bungled attempt to merge with Frankfurt's Deutsche Boerse.
The accession of Furse would come amid a backdrop of broad consolidation – or efforts towards it – among European stock exchange operators. The rival Euronext bourse was born last year of stock markets in Brussels, Paris and Amsterdam.
The trend in Europe is towards fewer, larger stock trading exchanges, as customers demand lower prices and technology makes leaps forwards.
While the London exchange previously showed eagerness to take part in the consolidation wave, the lack of a CEO is likely to have set back any plans to find a partner. Following the collapse of the German deal the company said it was strong enough to survive alone.
The Nasdaq stock exchange, which would have been an ally of a merged London-Frankfurt, has often been reported as a potential merger partner for London alone.
Shareholders put off by iX pact
Don Cruikshank, the LSE's chairman, was parachuted in to the exchange just before the London and Frankfurt exchanges struck their deal, which would have created a new market called "iX."
The LSE fought off a hostile bid from Sweden's OM Gruppen last year, although it had to jettison its proposed merger with Frankfurt to focus on its defence.
The LSE's management incurred the wrath of its shareholders – mainly stock broking firms and banks – for being seen as railroading the company into an unfavourable merger with Frankfurt.
Apcims' members own roughly one third of the LSE's capital, and were vociferous campaigners against the merger with Frankfurt.
Since then, Deutsche Boerse has moved forwards on plans to float its shares publicly, setting a range on the price of its shares on Monday of  285 and 335 apiece. That values the company at about 3 billion. 
|
|
|
|
|
 |
|
