The London Stock Exchange is set to step up the pace of talks on take-over proposals from rival suitors Deutsche Boerse and Euronext, sources said on Sunday, but they dismissed reports of a looming deadline. The LSE met once with the Frankfurt exchange last Thursday, and Euronext on Friday, but this week will hold several meetings with both exchanges, sources familiar with the talks said.
A merger with either would create a dominant exchange in Europe and a force for consolidation with other bourses, and form a wider, cheaper and more efficient market for investors. It would also create the world's second largest exchange after New York.
Talks will still focus on organisational issues and are not expected to discuss money, other sources said.
Deutsche Boerse had offered 530 pence per share for LSE, an approach which Europe's biggest equity market turned down, but it left the door open to talks, effectively triggering an auction.
LSE shares closed at 584 pence on Friday, valuing the company at around 1.5 billion pounds ($2.81 billion).
The Sunday Times said that Euronext Chief Executive Jean-Francois Theodore is "unlikely to table his 1.5 billion cash bid" until he is told his offer will not be called in by competition authorities.
Deutsche Boerse will touch on IT and integration in coming talks after offering sweeteners like basing combined equities markets and its Eurex derivatives unit in London, which would account for 45 percent of turnover of a merged group, sources said.
Euronext believes its acquisition and integration of UK derivatives market Liffe is a good model to follow, and will also stress that its similar structure to the LSE would keep users happy.
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