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LSE plans rights issue to fund Frank Russell bid

The London Stock Exchange Group said on Thursday it planned to raise $1.6 billion through a rights issue to help fund the acquisition of Frank Russell for $2.7 billion.

The LSE said it had proposed to buy Frank Russell from its Northwestern Mutual owners and other minority shareholders. It had said in May it was in talks with the owners about a possible acquisition for the investment services firm.

"The directors believe the acquisition is a rare opportunity to acquire a high quality U.S. business with a leading global brand providing index and investment management services," it said.

An aerial view of the London Stock Exchange Paternoster Square
Vulture Labs | Moment | Getty Images
An aerial view of the London Stock Exchange Paternoster Square

Under the plan, Len Brennan, the chief executive of Russell, will join the executive committee of LSE upon completion.

London Stock Exchange shares were up 2.7 percent following the news.

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