Stock Exchange faces bill for millions

Tom McGhie|Mail13 April 2012

LONDON Stock Exchange boss Clara Furse is under attack over a property deal that could cost the exchange millions of pounds.

Furse piloted through a plan for the LSE to abandon its tower building in the City in favour of an expensive new property near St Paul's Cathedral.

But with the LSE preparing to move into its new home early next year, the tower, valued at more than £90 million two years ago, remains unsold.

And critics say that Furse has overpaid on a lease - £12 million a year - for the huge new property at Paternoster Square.

One commercial property expert said: 'The LSE has got the worst of all worlds. It has hugely overpaid on the Paternoster property and it failed to sell the tower when it was worth about £90 million. It would be lucky to get two-thirds of that now.'

The LSE is also understood to be having problems sub-letting 80,000 square feet - about 40% - of the Paternoster Square property, which is surplus to its needs. It has made a £22 million provision to cover the likely loss of future rental income.

Euronext, the LSE's main rival which recently took over London's futures exchange, LIFFE, also has problems.

Chairman Jean-Francoise Theodore is leading a revolt against fellow director George Moller, who runs its Dutch business.

Under Euronext rules, Moller was expected to replace Theodore as chairman.

But Theodore is expected to get boardroom and legal backing to continue running the exchange.

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