Euronext, Europe’s largest stock exchange operator, will get even bigger after it agreed to purchase Borsa Italiana (the operator of the Milan Stock Exchange) from the London Stock Exchange, or LSE, for 4.3 billion euros ($5.1 billion).

The deal is complex and involves many stakeholders across the continent and U.K.

LSE entered into exclusive talks with Euronext last month on the deal after two other major European stock exchange operators — Germany’s Deutsche Boerse and Switzerland’s SIX — were muscled out of the picture.

LSE’s proposed disposition of Borsa Italiana is linked to its own plan to purchase data provider Refinitiv for $27 billion. LSE is still seeking regulatory approval from the EU for that transaction. (Refinitv is 55%-owned by Blackstone Group and 45%-owned by Thomson Reuters)

LSE’s acquisition of Refinitiv would transform LSE into a “capital markets infrastructure and information powerhouse, controlling widely-used services in share, bond and swaps trading as well as clearing, data and indices,” the Financial Times reported.

LSE put Borsa Italiana on the selling block after the European Commission’s competition watchdog raised concerns about LSE’s control over the European bond market.

LSE initially purchased Borsa Italiana in 2007 for 1.6 billion euros ($1.9 billion) – meaning it will make a huge profit on its sale to Euronext.

Upon gaining the Milan exchange, Euronext will operate exchanges with more than 1,800 listed companies and an aggregate market value of about 4.4 trillion euros ($5.2 trillion).

Borsa Italiana’s bond trading platform MTS will also allow Euronext to enter fixed income trading for the first time. MTS oversees the trading of Italy’s 2.1 trillion euro ($2.5 trillion) government bond market.

The deal will also sharply increase the amount of assets Euronext holds in custody on behalf of banks — from 2.2 trillion euros ($2.6 trillion) to 5.6 trillion

LONDON (Reuters) – London Stock Exchange

said on Friday it had accepted a 4.325 billion euro ($5.09 billion) cash offer by pan-European bourse operator Euronext

for the Milan stock exchange.

LSE entered exclusive talks with Euronext last month after the Paris bourse owner saw off competition from Deutsche Boerse

and Swiss rival SIX for Borsa Italiana.

LSE is selling Borsa as part of regulatory remedies to see through its $27 billion purchase of data provider Refinitiv, which is 45% owned by Thomson Reuters
, the parent company of Reuters News.

The sale is contingent on the European Commission formally stating it will only approve the Refinitiv deal if all or part of Borsa Italiana is sold.

“We believe the sale of the Borsa Italiana group will contribute significantly to addressing the EU’s competition concerns,” LSE Chief Executive David Schwimmer said in a statement.

The sale of Borsa is politically sensitive in Italy due to Borsa’s ownership of MTS, the bond platform which handles trading of Italy’s 2.1 trillion euro ($2.5 trillion) government bonds.

To secure the backing of the Rome government, Euronext has teamed up with state agency Cassa Depositi e Prestiti (CDP) and Italy’s biggest bank Intesa SanPaolo

.

(Reporting by Rachel Armstrong; editing by Simon Jessop)

Copyright 2020 Thomson Reuters.

Source Article

WASHINGTON (Reuters) – Citigroup Inc C.N agreed to pay a $400 million penalty and draw up a sweeping remediation plan after U.S. regulators identified “several longstanding deficiencies” and operational lapses, U.S. regulators said on Wednesday.

The Federal Reserve and Office of the Comptroller of the Currency said that the bank required “comprehensive corrective actions” and must overhaul its risk management, data governance and internal controls across the company.

The Fed said the action “requires the firm to correct several longstanding deficiencies.”

“For several years, the Bank has failed to implement and maintain an enterprisewide risk management and compliance risk management program, internal controls, or a data governance program commensurate with the Bank’s size, complexity, and risk profile,” the OCC said in its consent order.

WHAT CITIGROUP’S NEW FEMALE CEO JANE FRASER MEANS FOR BUSINESS AND THE NEXT GENERATION

In a statement, Citi said it was disappointed to have fallen short of regulatory expectations and has “significant remediation projects” under way.

The hefty penalty follows renewed public and regulatory scrutiny of Citi’s operations after an “error” led the bank to mistakenly send Revlon creditors $900 million of its own funds in August. The bank is pursuing legal action against some lenders who are refusing to return the payment.

Since then it has announced that Chief Executive Mike Corbat would retire earlier than expected and the bank would boost investment in its operational systems by $1 billion.

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Incoming CEO Jane Fraser, who will take over early next year, has highlighted improving risk and control systems as a priority. “We will invest in our infrastructure, risk management and controls to ensure

SYDNEY (Reuters) – Australian casino billionaire James Packer on Tuesday acknowledged sending threatening emails in 2015 to an unnamed person with whom he was working on taking Crown Resorts Ltd

private while a director at the company he created.

During questioning by a government inquiry, Packer blamed his “medical state” for the threats which he agreed were “shameful” and “disgraceful”. Packer, who confirmed on Tuesday that he has bipolar disorder after revealing previously he had mental health problems, said he should have told shareholders about his personal issues instead of keeping them secret.

“I think my medical state is what it reflected most on,” Packer said of the emails to the person. Packer, who quit the Crown board weeks later without disclosing medical issues, no longer works at the company but retains 37% of Crown, a stake worth A$2.2 billion ($1.57 billion).

One of Australia’s wealthiest people, Packer shuns public attention beyond staged photo opportunities or prepared statements. Packer testified via videolink in a jacket and tie from an undisclosed location, reported by Australian media to be on board a yacht in the South Pacific.

The government inquiry comes as the New South Wales state casino regulator considers whether Crown should be allowed to proceed with plans to run a 75-floor, A$2.2 billion ($1.6 billion) casino tower in Sydney, just months before its scheduled opening.

The risk of the company losing its licence grew last year following media reports, denied by the company, that Crown hired tour operators linked to organised crime to bring wealthy foreign gamblers, largely from China.

Packer denied knowing that Crown staff set up informal offices in residential locations in Guangzhou, China, where advertising gambling is illegal, to avoid detection. In 2016, 16 Crown staff were jailed in China for violating anti-gambling laws. [D-REUTERSNEWS-T004/Ie4b85a305a2b11e79b7692983d739d5a]

“I believe

KEY POINTS

  • Bristol Myers’ tender price represents a 61-percent premium on MyoKardia shares
  • The transaction is expected to close during the fourth quarter of 2020
  • An estimated 160,000 to 200,000 people have been diagnosed with symptomatic obstructive HCM in the U.S. and EU

Bristol Myers Squibb (BMY) said on Monday it signed a definitive agreement to acquire MyoKardia Inc. (MYOK) in a deal valued at $13.1 billion, or $225 per share in cash.

MyoKardia closed at $139.60 per share on Friday, meaning Bristol Myers’ tender price represents a 61% premium. The transaction is expected to close during the fourth quarter of 2020.

MyoKardia is a clinical-stage biopharmaceutical company focused on the treatment of serious cardiovascular diseases.

Bristol Myers Squibb said the transaction is expected to be “minimally dilutive” to its non-GAAP earnings per share in 2021 and 2022 and “accretive” beginning in 2023.

Bristol Myers Squibb expects to finance the deal through a combination of cash and debt.

As a result of the merger, Bristol Myers Squibb will obtain mavacamten, a potential treatment for obstructive hypertrophic cardiomyopathy, or HCM, a chronic heart disease with high morbidity. A New Drug Application for mavacamten for the treatment of symptomatic obstructive HCM is expected to be submitted to the U.S. Food and Drug Administration in the first quarter of 2021.

There are an estimated 160,000 to 200,000 people diagnosed with symptomatic obstructive HCM in the U.S. and EU, with no existing treatment options outside of limited symptomatic relief.

Bristol Myers Squibb also said it expects to “explore the full potential” of mavacamten in additional indications, including non-obstructive HCM, and to develop MyoKardia’s “promising pipeline” of novel compounds, including two clinical-stage therapeutics: danicamtiv (formerly called MYK-491) and MYK-224.

Mavacamten could generate annual sales of more than $1.5 billion worldwide by 2025, BMO Capital Markets