LSE plans rights issue to fund bid

London - The London Stock Exchange Group said on Thursday it planned to raise $1.6 billion through a rights issue to help fund the acquisition of Frank Russell for $2.7 billion.

The LSE said it had proposed to buy Frank Russell from its Northwestern Mutual owners and other minority shareholders.

The London Stock Exchange is pictured in this file photo. Credit: REUTERS

It had said in May it was in talks with the owners about a possible acquisition for the investment services firm.

“The directors believe the acquisition is a rare opportunity to acquire a high quality US business with a leading global brand providing index and investment management services,” it said.

Under the plan, Len Brennan, the chief executive of Russell, will join the executive committee of LSE upon completion. - Reuters