Macquarie considers London exchange bid

Macquarie Bank may team up with other investors to make a cash bid for the £1

Macquarie Bank may team up with other investors to make a cash bid for the £1.4 billion London Stock Exchange, it said this morning.

The disclosure by Australia's top investment bank came after a report said Swedish exchange owner OM Gruppen was also mulling a bid for the 300-year-old London exchange (LSE), drawing more names into the potential takeover battle and sending the LSE's shares to a six-month high.

The UK antitrust watchdog last month said two prior offers from rivals Euronext and Deutsche Boerse would hurt competition, but both remained in the wings.

Macquarie, which has 350 staff in London, said Europe's largest stock market operator was one of a number of potential acquisitions it was considering, but there was "no guarantee" its very early deliberations would lead to a formal offer.

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"If any bid were made, it would be part of a consortium and if any such offer is made it is likely to be solely in cash," said Macquarie.

Potential buyers of the LSE as members of consortia would be other stock exchanges, private equity firms or financial services firms.

The LSE did not comment on the speculation.