The London Stock Exchange Dumps BofA as M&A Advisor

The London Stock Exchange [LSE] has hired Morgan Stanley (NYSE:MS) and Barclays Capital as advisors on mergers and acquisitions [M&A], the London bourse said on Tuesday.

The new advisers replace Bank of America/Merrill (NYSE:BAC), which has assisted the London-based company since 2002.

According to the report, JPMorgan Cazenove Ltd. (NYSE:JPM), and Nomura Holdings Inc. will remain corporate brokers to the exchange.

Changes in advisory mandate in Europe’s oldest independent bourse come four months after Xavier Rolet, an equities veteran who ran Lehman Brother’s French business, replaced LSE’s longstanding chief executive Dame Clara Furse, who held her position with the exchange for eight years and spent several of them fighting off takeover bids.

LSE has often been at the centre of takeover activity and speculation, rejecting bids the exchange considered to be undervalued from companies including: Frankfurt-based rival Deutsche Boerse AG, Euronext NV, Australia’s Macquarie Group and Nasdaq OMX Group Inc. On Sept. 16, notes Bloomberg, LSE shares gained the most in almost five months in London trading on speculation Deutsche Boerse may renew its takeover interest.

Since taking over as chief exec. (May 20, ’09) Rolet, 49, has cut 12% of jobs, agreed to buy Sri Lanka’s MillenniumIT to gain a new trading system, appointed a new CEO of LSE’s fixed-income unit, MTS SpA, and changed the way LSE charges for trading.

Last week Rolet said he would look at acquisitions and partnerships to drive growth.

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