LSE shares lowest after Deutsche bid

February 25 | Updated: Feb 26 2005, 06:24am hrs
London Stock Exchange Plc shares fell to their lowest level since Deutsche Boerse AG made a bid after Fidelity Investments on Thursday said it opposes the German companys proposed takeover of LSE. LSE shares dropped as much as 20 pence, or 3.6%, to 535 pence, and traded at 541 pence at 12.11 pm London time.

Shares of Deutsche Boerse, owner of the Frankfurt Stock Exchange, rose as high as 57.01 euros, a record, and were up 2.38 euros, or 4.4%, to 56.41 euros in Germany.

Fidelity is the latest Deutsche Boerse investor to publicly oppose the takeover, following TCI Fund Management and Atticus Capital LLC, who said this week they will try to oust the supervisory board of the Frankfurt-based company on May 25 to scupper the acquisition.

People are now wondering whether Deutsche Boerse will be able to take over LSE, said Johannes Thormann, an exchange analyst at WestLB. Mr Thormann raised his target for Deutsche Boerse to 58 euros from 56 euros.