Germany's Deutsche Boerse may opt for a hostile bid for the London Stock Exchange at around 600 pence a share, Britain's Observer newspaper reported on Sunday. Deutsche Boerse made an 530-pence-a-share approach for Europe's premier financial market in December, but it was rebuffed as too low. The Observer, citing unnamed sources close to Deutsche Boerse, said Boerse Chief Executive Werner Seifert was beginning to despair of getting a recommendation from the LSE for an increased offer and was prepared to wait no more than 10 days.
"Time is running out for the LSE. We are trying to get a recommendation from the London board, but if we cannot we will take our case direct to their shareholders, without their blessing," one source was quoted as saying.
"Seifert's patience is wearing thin, and all along our case is being damaged by stories about how customers may not benefit from a merger. We want the chance to explain our position and state the advantages which a tie-up would bring to all concerned."
Neither Deutsche Boerse nor LSE officials were immediately available for comment.
LSE has agreed to talks with Deutsche Boerse, but is also talking to Euronext on a deal.
On Friday, Deutsche Boerse and Euronext presented preliminary reports to top LSE executives explaining how they would operate LSE in the event of a merger, sources familiar with the situation told Reuters.
Talks would continue to focus on operational issues and might move onto other subjects, such as regulatory approval or price, as early as the second half of this week, the sources said.
Both suitors are looking to boost growth by taking over the LSE in a deal that is expected to carry a price tag of at least 2 billion euros ($2.6 billion). They hope to achieve economies of scale that would allow fee cuts and attract business.