When the London Metal Exchange board assesses bids after the
May 7 deadline for submissions, it will consider how the
suitors plan to operate the exchange and the benefits they can
offer to users, as well as the outright price they are willing
to pay for the LME, Metal Bulletin understands.
Four exchanges are expected to make bids
ICE, CME Group, NYSE Euronext and the Hong Kong Exchange
and the LME has now heard presentations from the bidders
in support of their proposals.
Once the final bids are received, they will be reviewed firstly
by the bid committee and then passed on to the LME board for
full consideration. The boards aim is to present only one
of the bids to shareholders.
Alongside the value the bidders place on the exchange, the LME
board will consider how the potential buyer proposes to operate
the market, including their plans for the ring, the date
structure of LME contracts and the warehousing system, for
example, Metal Bulletin understands.
The LME will also consider the expertise bidders can bring to
further strengthen the LMEs role in the metal markets,
which may include systems development or access to certain
customer types in specific regions of the world.
The schedule to review and present bids to shareholders will be
finalised once bids have been received. As of midday on
Wednesday May 3, no bids had been submitted.