Bloomberg, citing a person with knowledge of the offer, reported that world’s largest futures exchange CME Group Inc has made a bid for the London Metal Exchange.

The price CME Group offered wasn’t disclosed by the person, who declined to be identified because negotiations are private.

According to Mr Diego Perfumo an exchanges analyst at Equity Research Desk, a hedge fund adviser in Greenwich, Connecticut, other bidders for the LME may include Deutsche Boerse AG, NYSE Euronext Inc, Intercontinental Exchange, and Hong Kong Exchanges and Clearing Ltd.

The LME is considering ending its independence after record trading volumes attracted multiple bidders for the exchange that handles about 80% of global trade in metals futures. LME CEO Mr Martin Abbott set yesterday as a deadline for takeover bids that will be reviewed by a special committee. LME’s board will review the bids in a February 23 meeting.

The LME has operated independently since it started trading tin and copper in 1877, later adding other non ferrous metals such as aluminum, nickel, zinc and lead, minor metals including cobalt and steel contracts.

(Sourced from Bloomberg)