Warwick Business School's Professor John Colley Comments On LSEG's Annual Results

Commenting on the LSEG's annual results, Professor John Colley, Warwick Business School's Professor of Practice in the Strategy & International Business Group said: "Following the strange end to the 'merger of equals' between LSEG and Deutsche Borse, Xavier Rolet, CEO of LSEG, needed a good set of results which have been delivered.

"A 20% increase in this year's dividend is clearly intended to appease the shareholders. They thought they would be participating in a much larger business with stronger positions in Europe and internationally. The dividend increase is also intended to distract from the substantial deal costs written off and the lack of a future strategy. 
 
"Shareholders still seem bewildered by the rationale for effectively ending the deal. Surely the Italian fixed interest trading platform was not worth terminating the deal for.

"Presumably there are some other concerns which remain opaque to shareholders at present. Rolet believes he may be postponing his retirement. Perhaps not for that long unless there are more answers and a new strategy."

John Colley researches M&A and is a former MD of a FTSE 100 company.