The German government yesterday threw its weight behind Deutsche Borse's attempt to acquire the London Stock Exchange, countering the impression that it had misgivings about the bid.
"We are principally supportive of the offer and the fact that a German operator is taking such a step is a remarkable event," said the finance ministry. The German financial sector would "emerge reinforced from such a merger".
Separately, Paris-based Euronext kicked off its effort to woo the LSE as its chief executive, Mr Jean-Francois Theodore, held a first meeting with his UK counterpart, Clara Furse.
Mr Theodore is understood to have emphasised the similarities between the two exchanges. He is arguing that a merger between their companies would have more benefits for LSE users than a deal with its German rival.
Meanwhile, German officials sought to play down reports that the government opposed Deutsche Borse's efforts to buy the LSE.
One government official, however, said that concerns, including fears that the Borse's headquarters could be transferred to London, had originated from Frankfurt's home state of Hessen.
"The government has a duty to preserve German jobs," the official said.
"But it also has a duty to ensure that the companies remain competitively viable in the long run so that they can keep offering these jobs."
The show of support suggests the German government is conscious that a link-up between the LSE and Euronext could marginalise the Borse. - (Financial Times Service)
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