Leading article: Wiggins sets the perfect tone for London 2012 - The Independent
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Bradley Wiggins' stylish triumph in the Tour de France brought the perfect prelude to the London Olympics. Here was a victory that no one with a stake in London 2012 – not Lord Coe, not David Cameron, not even Boris Johnson or Tony Blair – could have ...London Metal Exchange takeover vote a close call - survey - Reuters UK
LONDON |
LONDON (Reuters) - With the fate of the world's largest metals marketplace due to be decided in two days, London Metal Exchange shareholders are taking the 1.4 billion pound ($2.2 billion) decision on a sale to Hong Kong stock exchange down to the wire.
A Reuters survey showed that while half of respondents were clearly in favour of the deal, some smaller industrial users of metals such as copper, aluminium and nickel were against or had not made up their minds and, crucially, some heavyweight stakeholders were still undecided.
The anonymous survey with responses from 38 of the banks, funds and industrial users entitled to vote -- more than half of the total -- showed that most of those who had reached a decision would vote yes to a sale of the 134-year old exchange at the extraordinary general meeting.
That would get the vote past the first hurdle of a positive outcome from 75 percent of total shares in favour of the offer from Hong Kong Exchanges and Clearing (0388.HK) that the LME board endorsed last month over a bid from InterContinental Exchange (ICE.N).
However, the LME's system of voting, designed to give a substantial voice to smaller shareholders, means that in a second part of Wednesday's process, when votes of those attending the meeting are counted, the overall outcome could still go either way if industrial users turn out in force.
The largest shareholders are banks, including top shareholder JPMorgan (JPM.N), with 1.4 million shares, and second-largest Goldman Sachs with 1.23 million. (GS.N)
Industrial users together hold around 500,000 shares with voting rights and they account for around 30 of a shareholder list that numbers around 70 but includes some owned by the same entities.
The industrial shareholders - metals plants and traders - have voiced objections to the takeover since the start of the process.
They fear a sale might alter the LME's low fees system and its unique, complex structure of futures trading, which still includes open outcry on a floor in London's Leadenhall Street, and which they value as an accurate way of establishing prices.
"The vast majority of the physical users of the exchange have clearly stated they are not happy with a change of ownership," one source close to the process said on Monday.
The Association of German Metal Traders (VDM), which includes Europe's largest copper smelter Aurubis AG and metals trader Wilhelm Grillo Handelsgesellschaft, sent a letter to the LME urging it not to sell.
In the Reuters survey conducted late last week, 19 of the 38 respondents said they would certainly vote yes, while the rest were undecided, declined to comment or were against.
The other shareholders declined to take part.
Some of those in favour of selling make no bones about what has swayed them in tough financial conditions.
"We're going to vote yes. Who knows what's going to happen in three years' time, who looks beyond three years these days? Better to just take the money and run," one European company with a small holding said.
The voices against continue to cite unease over the consequences of a sale, especially after HKEx's moratorium on changes to the LME's structure ends at the start of 2015.
"Hong Kong has given us all the assurances they could possibly give, but I'm not happy. They've tried to downplay the risks, but the January 1 2015 deadline is not something I'm comfortable with," another shareholder at an industrial company said.
"Risk protection is extremely important to us. For the banks, price discovery is not a big issue, but for us it is."
DOWN TO THE WIRE
The decision is also proving difficult for some larger shareholders, with more than one company holding 300,000-plus shares still undecided as of Monday.
The LME board, which includes Goldman Sachs and major commodities trader Sucden Financial, voted unanimously in favour of HKEx's offering, not least because it is seen providing a vital gateway to China, which consumes 40 percent of the world's copper.
Sources close to the matter said late last month that JP Morgan was yet to be convinced of a sale, and if it voted "no" it could well influence others.
JP Morgan has kept publicly silent on its voting intentions while many other shareholders have declared their position.
In the event of the vote failing, a large chunk of the 1.4 billion pound valuation could crumble.
"If the sale doesn't go through there will be big destruction of value in the LME, maybe to about 500 million (pounds). We can't say no to Hong Kong and then go back to ICE and say do you want to put in another offer."
"The Hong Kong exchange is the best way to go, because of the opportunities in China, closer relations with the regulators and opportunities for warehousing." ($1 = 0.6397 British pounds)
(Additional reporting by Maytaal Angel, Harpreet Bhal and Eric Onstad; Editing by Anthony Barker)
London 2012 Games Lanes: Traffic delays of two hours - BBC News
Traffic cones in place for roadworks before the Olympic Route Network in London becomes active
Drivers heading into London faced delays of up to two hours on Monday morning after lanes on major roads were shut in the run-up to the Olympics.
Lane closures on the A3, A12, A13 and A40 were planned to prepare the roads for the Olympic Route Network (ORN), Transport for London (TfL) said.
By midday the traffic situation on the A12, A13 and A40 - which saw the worst delays - had improved.
The ORN in London will become active across London on 25 July.
Garrett Emmerson, TfL's chief operating officer in charge of streets, said he "sympathised" with the motorists who were stuck on the roads.
Following this morning's disruption a spokesman for Prime Minister David Cameron said: "The reality is that there is going to be disruption.
"We have huge numbers of people coming to London to enjoy the Olympic Games and that will put pressure on the transport system."
But he added that TfL has been warning people to avoid driving into the capital from mid-July because driving on certain roads "is going to become very difficult".
Traffic was running a lot more smoothly on all the affected roads during the evening rush hour.
In west London, a lane remains closed on the A40 at Savoy Circus due to a dangerous structure above a building.
This closure led to the delays on the road leading up to Hangar Lane where there had been plans for roadworks to prepare the Games Lane for Wembley.
In east London on the A12 restrictions were in place on the East Cross Route and on the A13 work was ongoing on Newham Way, both on the ORN leading to the Olympic Park. But no problems were reported on the A3.
One motorist who called BBC London from the A13 said his normal hour-long drive from Swanley to Redbridge was expected to take about two and a half hours.
Earlier in the day there was also heavy traffic on local roads in Canning Town and West Ham in east London.
Congestion was also seen in central London, with delays in Whitehall, Shaftesbury Avenue and Trafalgar Square.
The Mall is closed due to Olympic preparations and motorists told of delays in Greenwich.
And there will be additional road closures across London as the Olympic Torch continues its procession, with Croydon, Sutton, Merton and Wandsworth to be visited.
Dozens of motorists vented frustration at the delays on Twitter.
This felt like the day when the Olympic reality hit home for the capital's motorists.
For over a week Transport for London has been tinkering and re-phasing traffic lights.
That's meant there have been queues where you don't normally get them.
This morning a number of lanes were taken out on the A40 near Wembley and the A12 and A13 near the Olympic Park.
It made the queues even worse - some drivers say their trips were double the usual length - with two hour journeys to get into London from Essex.
What TfL are trying to do is control the amount of traffic that gets onto the Olympic Route Network to - their words - "protect the venues".
What that does in reality is force traffic out of town.
This wasn't a mistake, this wasn't a one-off and it wasn't a freak occurrence. This is part of the plan and it will only get worse when the other Games Lanes are activated on Wednesday.
TfL have been warning motorists to avoid central London, the Olympic Route Network and the roads around the venues. This morning it became clear why.
Chris Rowe tweeted: "Traffic on A12 and A13 unbelievable this morning."
Looking ahead to the full Olympic Route Network coming into force on Wednesday, Richard Cowley wrote: "Think this is rough - wait for the 25th."
But there was a note of positivity - @ExposedUK tweeted: "Massive queue on the A40 this morning, but we're still excited."
There have been changes to 120 key junctions, with more than 1,000 sets of traffic lights rephased due to the Games.
A fine of £130 will be issued to drivers who break the Games Lanes regulations, for instance by driving in them or stopping along the route.
Up to date traffic information on delays can be obtained from the BBC Travel news site for London.
Garrett Emmerson, TfL's chief operating officer in charge of streets, said it was important to keep traffic flowing around the Olympic venues.
"All of the physical measures needed for the Olympic Games are now on the road networks... so this is what it's going to be like now for the next three weeks," he said.
"What we have got to do now is to make sure that we can manage the traffic to keep it moving, both for the Games and also as far as possible for Londoners to go about their daily business."
Ahead of the delays TfL had warned that lane closures on Monday would mean "several major routes into London will be exceptionally busy".
The changes are part of the establishment of the ORN, which is intended to make sure athletes and officials can move around the city smoothly.
It is due to begin full operation on Wednesday.
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