No sale deal for LME until next year

Speaking at a seminar at the beginning of LME Week, Mr Abbott said the exchange is in the process of registering interest from bidders and will set up a ‘data room’ – opening the books to would-be buyers – by December.

The 134-year old LME, the world’s biggest market for industrial metals, said late September it was considering a sale after receiving “several expressions of interest”.

“If and when the board is satisfied that there is something serious that the shareholders should see I can’t imagine that is going to happen before the end of the first quarter, possibly the beginning of Q2,” Mr Abbott said.

“If shareholders decide that there is something they want to take up... I can’t see that (a deal) come to a conclusion until the end of Q2.”

Last week, Mr Abbott said interest in the LME as a takeover target has snowballed and the number of suitors has risen to double digits because business is booming with volumes at record levels.

There is market speculation that the list of potential acquirers may include CME, the largest futures exchange in the United States, IntercontinentalExchange and UK-based broker ICAP.

The LME was established back in 1877 above a hat shop in Lombard Court, and is now one of the last bastions of open outcry trading.

Trading houses and banks that use the market also own it.