EASTERN EUROPE'S BATTLE FOR EQUITY

摘要

The ambitions of the London and Frankfurt Stock Exchanges to engage in mergers with peers on the other side of the Atlantic (see this month's cover story, page 16) have had commentators reaching for the superlatives. But for some issuers, bigger is not necessarily better. Both Frankfurt, and in particular the Alternative Investment Market (AIM) in London, have been significant locations for listings by companies in central and eastern Europe (CEE). These companies may be relatively large entities by the standards of their home countries, but they will be small or medium-sized enterprises (SMEs) in the context of these giant global exchanges. Investment bankers active in the CEE region are consequently discussing with clients whether a listing in London or Frankfurt is still a good fit. Experience even before the current round of exchange consolidation suggests the answer may be not.