LSE launches Russell funding rights issue at tight discount

By Andrew Griffin
28 Aug 2014

London Stock Exchange Group launched a £938m rights issue last Friday that will fund its previously announced acquisition of index services firm Frank Russell Company. The deal came alongside the LSE's results, which showed surging profits on the back of record IPO volumes.

Shareholders will be offered three new shares for every 11 they hold, at £12.95 each. That is a 30.1% discount on the theoretical ex-rights price.

Pricing the fully underwritten deal at the tight end of the usually expected 30%-40% Terp discount range reflected the strong support the acquisition and its ...

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