News Column

London Stock Exchange In Exclusive Talks For Russell Investments

May 20, 2014

Samuel Agini

LONDON (Alliance News) - London Stock Exchange Group PLC Tuesday confirmed it has entered into exclusive discussions for potential deal to acquire US index and asset management business Russell Investments.

Last week, the London Stock Exchange had said it was in ongoing discussions with The Northwestern Mutual Life Insurance Company, Russell Investments' parent company, over a potential acquisition.

Media reports had indicated that there would be stiff competition for Russell Investments, but a report published in the Financial Times earlier Tuesday said the London Stock Exchange's talks with The Northwestern Mutual Life Insurance Company have since become exclusive.

"Discussions remain on-going and there can be no certainty that a transaction will be forthcoming," the London Stock Exchange said in a statement Tuesday.

A deal for Russell Investments, which says its US Indexes have USD5.2 trillion in assets benchmarked to them, would add to the London Stock Exchange's acquisition of index business FTSE International Ltd in 2011.

Last week, the London Stock Exchange said its intention would be to raise equity to fund a deal if it were to go ahead with the acquisition.

In January, Northwestern Mutual said it was exploring "strategic" alternatives for Russell Investments, including a possible sale.

London Stock Exchange shares were Tuesday quoted at 1,771.00 pence, up 0.4%.

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Source: Alliance News

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