Shares in Plus Markets Group (LON:PMK) plunged 25 per cent today as the company stated that its exchange licence would be revoked by the Financial Services Authority if the takeover bid from broker ICAP is rejected by shareholders.
If the deal does not complete before June 22 this year, steps to revoke the recognised investment exchange licence (RIE) will begin, the company said.
The firm currently anticipates that any such revocation would take effect from October 31 this year - the intended date of closure of the PLUS-SX markets even though activities may stop before that.
As at 11.45am, shares in Plus were down 25 per cent, to change hands at 0.23 pence.
PLUS, which provides listing and quoting services to around 140 companies on the stock exchange, was offered £1 in cash by ICAP on 18 May this year.
The board has accepted the offer and unanimously recommended the proposed sale.
ICAP already acts as a broker in exchange products and is a full member of the world’s largest exchanges.
In addition, a motion has been put forward by Amara Dhari Investments (17.2 pct interest) and private shareholder Simon Chapman (3 pct), calling for the chairman Malcolm Basing and chief executive Cyril Theret to be removed.
This resolution will be voted on at the firm's AGM on June 29.