93.25 0.00 (0.00%)
After hours: 5:09PM EDT
|Bid||92.76 x 800|
|Ask||93.20 x 1100|
|Day's range||92.33 - 94.05|
|52-week range||69.69 - 95.55|
|Beta (3Y monthly)||0.35|
|PE ratio (TTM)||26.39|
|Earnings date||31 Oct. 2019|
|Forward dividend & yield||1.10 (1.20%)|
|1y target est||97.64|
(Bloomberg Opinion) -- London Stock Exchange Group Plc left gatecrashers a window of only a few months to try to break up its $27 billion takeover of data provider Refinitiv. Hong Kong Exchanges and Clearing Ltd. has moved fast and first with a potential bid for LSE worth 30 billion pounds ($37 billion). On the surface its proposal is better than the LSE’s own deal, but the path to a firm offer from Hong Kong that runs all the way to completion is fraught with uncertainty.LSE’s agreement to buy Refinitiv (which competes with Bloomberg LP, the parent of Bloomberg News) has forced the hand of anyone who wants to buy the London bourse. If LSE’s shareholders approve the Refinitiv deal, the British company will become too big a target. With the vote on that transaction due by the end of 2019, any auction among LSE bidders would have to happen this year.Of course, investors liked the Refinitiv deal. LSE’s shares rose 20% afterwards. That gain reflected both the probable value creation from a tie-up and the possibility of an approach from an interloper stung into action, such as the one that’s just arrived from Hong Kong.But a bidder doesn’t have to offer a huge premium on top of where LSE shares are now. The real benchmark for a bid is where the LSE shares were trading before its offer for Refinitiv. The choice now for the LSE’s board and shareholders is between a future reaping synergies from Refinitiv or being taken over by another exchange and taking an upfront premium.A suitor therefore just has to offer more value than what comes from the Refinitiv deal, with comparable certainty. HKEX is certainly trying hard. Its cash and stock proposal is worth nearly 84 pounds per LSE share based on its last closing price. That’s almost 50% higher than where LSE was trading in July before the Refinitiv deal. It’s also 23% above where LSE was trading yesterday. These are serious numbers.That said, the proposal is only one-quarter in cash. Investors therefore need to believe that the long-term investment case for an Anglo-Asian tie-up is stronger than that for the LSE-Refinitiv combination. HKEX’s ownership of London Metal Exchange hasn’t been an unmitigated success. The company argues that its LSE bid could let shareholders capture capital market opportunities from a rising China. That alternative growth story may be persuasive.The odd aspect is HKEX’s tactics in making its proposal public without any evident support from LSE. The target has said cautiously that it will weigh the approach, while noting it was a long way from being fully baked. But HKEX’s decision to reveal its hand, however warm, isn’t altogether friendly. It’s designed both to show commitment and to put pressure on the LSE’s board to engage. Stock exchanges are – rightly or wrongly – national treasures. It’s hard to imagine a hostile bid succeeding so Hong Kong will somehow need to bring LSE management onside.That dovetails with the political considerations. The LSE deal with Refinitiv would create a London-based global exchange and data powerhouse. Hong Kong is proposing a straight takeover. There are questions too over the territory’s future as a financial center after the recent protests. And while the LSE may not be cheap on financial metrics – the proposal values it at 26 times expected Ebitda – this might be seen as the ultimate Brexit grab of a prize U.K. asset.These considerations leave the LSE vulnerable to other bids too. The obvious candidate is Intercontinental Exchange Inc of the U.S. Watch this space.To contact the author of this story: Chris Hughes at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Readers hoping to buy Intercontinental Exchange, Inc. (NYSE:ICE) for its dividend will need to make their move...
(Bloomberg) -- Intercontinental Exchange Inc. is closer to offering Bitcoin futures trading as its Bakkt unit opens its digital-asset custody warehouse today to customers. Here are the nuts and bolts of how it will work.Once the futures begin trading on Sept. 23, actual Bitcoin can be acquired by going long in the one-day or 30-day contract and holding to delivery.Trades will occur on ICE Futures U.S.Clearing is through ICE Clear U.S.Custody is handled by Bakkt Trust Co., which received a charter from the New York State Department of Financial Services last month to hold customer tokens. This warehouse will move Bitcoins from short positions to long positions at expiration, resulting in actual delivery of Bitcoin.The early opening of the warehouse is meant to allow customers to move Bitcoin in and out of their accounts to become comfortable with the process prior to Sept. 23.Both futures contracts will be margined, meaning there’s no need for users to pre-fund their trading accounts or collateralize them at 100% as was previously envisioned by ICE.ICE hopes the futures will create price discovery for Bitcoin apart from any cash market influence, as the company has cited abuse and manipulation in spot Bitcoin trading. Whether that will come from the one-day or 30-day contract is yet to be seen.It’s rare in the futures world for a company to act as exchange, clearinghouse and settlement authority; this last part delayed ICE’s plans for months as it sought the NYDFS approval to become a trust.This is not the first Bitcoin futures contract, but the first to offer physical delivery. CME Group and Cboe Markets have both offered Bitcoin futures that are cash-settled. Cboe discontinued its contract. Read More: Buying Your Starbucks Fix With Bitcoin Is Now Closer to RealityTo contact the reporter on this story: Matthew Leising in Los Angeles at firstname.lastname@example.orgTo contact the editors responsible for this story: Michael J. Moore at email@example.com, Dave Liedtka, Rita NazarethFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put...
Intercontinental Exchange (ICE) Q2 reflects strength in global energy business and compounding growth in subscription-based Data & Listings business.
ICE (ICE) delivered earnings and revenue surprises of 2.17% and 0.44%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
(Bloomberg Opinion) -- London Stock Exchange Group Plc has put another obstacle in the way of any bidder looking to buy the venerable bourse and stop its proposed $27 billion purchase of Refinitiv.On Thursday, LSE shares leapt again after the exchange confirmed its plans to buy the financial data provider and give its owners Blackstone Group LP and Thomson Reuters Corp. a 37% stake in the enlarged company. LSE stock is now 25% above its price before the transaction became public last week, lifting the company’s market value by about 5 billion pounds ($6.1 billion).It was already clear that the LSE is buying Refinitiv (which competes with Bloomberg LP, the parent of Bloomberg News) at an attractive valuation multiple. But there is some justification for renewed enthusiasm. LSE said it could reap 225 million pounds of annual revenue gains from the tie-up within five years, on top of the already announced 350 million pounds of cost savings.Assume a 50% margin on those extra sales and the financial benefits of the deal jump to more than 450 million pounds annually. Allow for integration costs and the long wait for full delivery and this uplift is worth perhaps 4 billion pounds, and will be shared with Blackstone and Thomson.Everything else about the transaction could be expected to exert a downward force on LSE’s stock price: It’s big, it’s different, it dilutes revenue growth and it will push leverage above three times Ebitda, normally a red line for shareholders. Returns look humdrum.If the cost synergies are convincing, the revenue profile of the combination is less easy to be sure about. Refinitiv, whose products include the Eikon terminal, is a mix of mature and growing businesses. LSE says the enlarged group’s sales will grow between 5% and 7% in the first three years after the deal closes. The bottom end of that range would represent something of a come-down for LSE, which grew revenue by 9% last year.Still, Thursday’s reaction suggests investors are relaxed about all this. They may also be giving LSE some credit for moving to a more predictable revenue base. Recurring income will account for about 69% of LSE’s total, up from 39%. And rather than fret about leverage, shareholders appear to be welcoming the earnings uplift from taking on debt. Analysts at Berenberg suggest CME Group Inc. and Intercontinental Exchange Inc. could be potential interlopers. They face a challenge. The rise in LSE’s stock over the last week is already close to the typical premium that would be demanded in a traditional takeover and investors could expect further gains if things go really well.A 198 million-pound break fee is no deterrent – but the approval timetable is. The LSE has chosen to hold its own shareholder vote on the deal before the year-end. If investors say yes, the exchange has to buy Refinitiv once regulatory approval comes through, assuming there’s no cunning legal get-out. That gives only a four-month window for any alternative deal to emerge.True, that sounds like a long time. But it forces interlopers to make a decision about buying the LSE at a time when the U.K.’s relationship with Europe is highly uncertain. That may give them pause. The LSE could have chosen to hold the shareholder vote after regulatory approvals were received – but a canny vendor like Blackstone would hardly have been willing to give the LSE a free option on the deal for more than a year. Still, December seems very soon. An interesting few months lie ahead.To contact the author of this story: Chris Hughes at firstname.lastname@example.orgTo contact the editor responsible for this story: Edward Evans at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Intercontinental Exchange (ICE) is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP heading into earnings season.
Intercontinental Exchange's (ICE) second-quarter is likely to benefit a broad range of risk management services and strength in global data services and energy franchise.
ICE (ICE) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
ICE (ICE) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Nasdaq's (NDAQ) Q2 is likely to benefit from growth in exchange data products across U.S. and Nordic equities, solid options and fixed income businesses.