The London Stock Exchange (LSE) said it will more than double the cash it plans to return to shareholders to £510 million as it defends itself from a bid by Australia's Macquarie Bank.
The London exchange, the subject of a long-running takeover saga, asked shareholders once again to reject the £1.5 billion offer from Macquarie, saying it failed to take into account the bourse's franchise and strong trading performance.
"The London Stock Exchange has a unique strategic position and an exceptional customer franchise," Chairman Chris Gibson-Smith said today. "Macquarie's offer recognises none of this. It provides no value today and reflects no value tomorrow."
Macquarie now has until February 26th to raise its 580-pence-a-share offer.
The stock was up more than 3 per cent on the day. The exchange said it would also buy back up to £50 million of its shares each year after returning the cash to shareholders.
It will also raise the total full-year dividend by 71 per cent to 12 pence, the LSE said.