Euronext would consider London base

European stock market operator Euronext would consider basing all its operations in London if its expected bid for the London Stock Exchange is successful, the Times newspaper reported on Tuesday. The report said that Euronext is prepared to allow a combined exchange to be listed in London and Paris, and would consider a relocation some time after any merger with the LSE.
Sources told Reuters last week that Euronext may unveil some details of its proposals for a merged exchange in coming days.
ON TUESDAY THE TIMES SAID THE PROPOSALS WILL INCLUDE:
-- Independence for the LSE, with half the board and the chairman to be drawn from London.
-- London to manage all five cash equities markets operated by the enlarged group.
-- LSE to become the hub of a London-centric operation.
The proposals will not include a price for Euronext's LSE offer, the Times said, but Euronext declined to confirm or deny the report.
"We remain in discussions with the LSE but we will not comment on any aspect of these discussions," Euronext said.
The LSE had no comment.
Euronext owns Liffe, the UK derivatives exchange, and a merger with the LSE would result in 75 percent of Euronext group's operations being based in London.
The LSE has already twice rejected a 530 pence per share offer from Deutsche Boerse, which valued Europe's biggest equity market at 1.3 billion pounds ($2.45 billion).
Moving Euronext's remaining operations to London would be less of a wrench than a similar move for Deutsche Boerse, which has already faced fire from German politicians worried about the Frankfurt exchange moving lock, stock and barrel to London - a step Deutsche Boerse has dismissed.
Sources familiar with the take-over talks said Euronext had reached no decision on the structure of a proposed take-over but that best practice corporate governance was important for the LSE and Euronext.
The UK's Office of Fair Trading is examining the proposals from Deutsche Boerse and Euronext to buy the LSE, a step that would create the world's second-biggest exchange after the New York Stock Exchange, as well as a dominant trading force in Europe, attracting other bourses to its fold.
Sources familiar with the process said discussions continue between the LSE and its two suitors, though no set-piece meetings involving the top officials were slated so far for this week as Deutsche Boerse hits the road to woo shareholders.