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Deutsche Börse mulls lower acceptance threshold for LSE merger

London StockExchange Group Plc on July 11 took note of 's statement aboutreconsidering the 75% minimum acceptance threshold for the tender offerassociated with the exchanges' proposed merger.

The German exchange said July 10 that it is looking intolowering the minimum acceptance threshold for the tender offer in an attempt toenable the involvement of index funds in the offer.

The facts will be evaluated by the parties involved on July11. "Only then will a decision by the relevant bodies of the partiesinvolved be made if the acceptance threshold will be lowered or not," thecompanies said.

Index funds control 15% of the German exchange operator'sshares and cannot tender their shares until the minimum acceptance threshold isreached and untendered shares are replaced by the tendered shares in therespective index. The exchange is concerned that the amount of time it takesfor the share replacement in an index combined with institutional shareholders'tendency to tender their shares on the last day of the initial offer periodwill make it hard to achieve the threshold within the given deadline.

"People familiar with the matter" told The Wall Street Journal that DeutscheBörse may lower the minimum threshold to 60%. The Daily Telegraph noted in a July 9 report that as of the end ofthe day, about 28.08% of Deutsche Börse shares were tendered. However, the July12 deadline can be extended if the minimum threshold is not reached, accordingto the U.K. paper.