JP Morgan Chase is buying a 4.7% stake in the London Metal Exchange from bankrupt broker MF GlobaL for £25m (€29m), three people familiar with the matter said yesterday.

JP Morgan bought the stake in an auction process handled by MF Global's administrator, KPMG. The deal is expected to be formally announced this week, the people said but the LME board's will need to approve the deal before it can close, one of the people said.