JPMorgan (JPM) Picks Up MF Global's LME Stake for Steep Discount

JPMorgan (NYSE: JPM) has become the largest holder of the London Metal Exchange, surpassing Goldman Sachs (NYSE: GS) with a recent move.

According to sources, JPMorgan acquired a 4.7 percent stake in LME from now-defunct MF Global (OTC: MFGLQ) in a deal valued at £25 million, or $39.1 million.

JPMorgan would be adding to a 6.2 percent LME stake already held, bringing its total to 10.9 percent. Goldman currently holds a 9.5 percent stake.

The deal might have been solid gold for JPMorgan. According to recent reports, LME has opened its doors to a potential £1 billion takeover, meaning the 4.7 percent stake had a potential value of £47 million, or about $75 million. Numbers indicate JPMorgan might have got the stake for 47 percent off.

Reuters notes JPMorgan might make an announcement later on in the week. Shares are down about 1 percent in mid-day trading.

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