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Deutsche Börse set to lower bar for London Stock Exchange deal

Published: 11:15 11 Jul 2016 BST

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Reports suggested the threshold could fall to 60% but Deutsche Börse (above) did not confirm that

Deutsche Börse AG (ETR:DB1) could lower the bar for approving its planned £20bn tie-up with the London Stock Exchange Group Plc (LON:LSE) amid 'Brexit' fears.

The Frankfurt-based stock exchange is considering reducing the shareholder acceptance threshold from 75% amid reported fears that it will not be able to reach that level by the Tuesday deadline.

Index funds which hold up to 15% of its shares are unable to accept the offer until the minimum level of acceptances has already been reached.

Deutsche Börse said in a statement that parties involved were examining the scope to lower the minimum acceptance threshold "with a view to enabling index funds to participate in the offer”.

Reports suggested the threshold could be reduced to 60% but Deutsche Börse did not confirm that.

The two exchanges agreed a £20bn merger earlier this year but doubts have emerged following the UK’s vote to leave the EU, with some investors questioning how 'Brexit' might affect it.

The deal, if approved by shareholders and regulators, will create the world's biggest exchange by revenue.

London Stock Exchange said on July 7 that the US and Russian authorities had approved it.

EU regulators have yet to rule on the tie-up but LSE shareholders gave it the go-ahead on July 4.

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