Merger

London Stock Exchange
12 September 2000

LSE TO FOCUS ON DEFEATING OM BID - iX MERGER PROPOSAL WITHDRAWN

The Board of the London Stock Exchange plc (LSE) announces that it has today
decided to withdraw its merger plan with Deutsche Borse, in order to focus
attention wholly on the inadequacies for shareholders and customers of the
hostile bid from OM Gruppen (OM).

In proposing the merger, the Board was seeking to ensure that the LSE could play
a leading role in the consolidation of European exchanges and globally through
the proposed link with NASDAQ.  The Board was well aware that such an ambitious
plan required a number of issues to be resolved, some of which were outside the
LSE's control.  It is clear from the shareholder, customer and regulatory issues
raised, which the Board has sought to reconcile, that it is not possible to
pursue this proposal in parallel with a bid defence under a Takeover Code
timetable.  

The Board remains of the view that cross-border consolidation of European
exchanges, leading to an enlarged pool of liquidity and catalysing essential
cost reductions in clearing and settlement, is in the interests of investors,
issuers, intermediaries and shareholders.  The Board believes that in
considering any takeover proposal its shareholders, in their role as customers,
would need to be satisfied that their businesses would not be damaged by a
change of control of LSE.  In addition, shareholders would need to see a full
price to justify surrendering control of such a valuable business.  It is quite
clear that the OM offer fails totally on both of these counts.

Don Cruickshank, Chairman of the LSE, said: 'Not enough of the issues raised by
crossborder consolidation have been resolved, and there is now too little time
to build confidence that they would be resolved if the merger went ahead.  There
is very real value in the LSE, even though it has had so few months of life as a
commercial for-profit company.  When the OM offer has been seen off, the Board,
in full consultation with shareholders and customers, will review the means by
which London's pre-eminent role in European equities trading can best be
promoted in both their interests.'


Press enquiries:

London Stock Exchange
Kay Dixon                               020 7797 1222
Jeremy Hughes               

Schroder Salomon Smith Barney
Philip Robert-Tissot                    020 7986 4000

Merrill Lynch
Kevin Smith                             020 7628 1000

Brunswick
Derek Bainbridge                        020 7404 5959
David Brewerton

Schroder Salomon Smith Barney and Merrill Lynch, which are regulated in the
United Kingdom by The Securities and Futures Authority Limited, are acting for
London Stock Exchange plc and no one else in connection with the offer by OM and
will not be responsible to anyone other than London Stock Exchange plc for
providing the protections afforded to their respective customers or for
providing advice in relation to the offer.