The London Stock Exchange has said it will return more money to shareholders as it looks to fight off a hostile bid from Australia's Macquarie Bank.
A number of buyers have been circling the LSE
To keep investors on its side, the LSE said it would double the amount of cash it was returning to £510m ($886m).
It also will buy back up to £50m worth of its shares, and raise the total full-year dividend by 71% to 12 pence.
At the same time, the stock exchange reiterated calls for shareholders to reject Macquarie's £1.5bn takeover bid.
The LSE's shares climbed 5.5% to 803.50 pence in morning trading on Friday.
Electronic share trading has increased competition between exchanges and is driving consolidation in the industry, analysts said.
The LSE has become a target for a number of bidders, including rivals Euronext and Deutsche Boerse, as the exchanges vie to become the major European stock market.
Macquarie has offered investors 580 pence for every LSE share, well below the stock's current 796p level.
The LSE called Macquarie's offer "ill-considered".
"The LSE has a unique strategic position and an exceptional customer franchise," said Chris Gibson-Smith, the company's chairman.
"Macquarie's offer recognises none of this. It provides no value today and reflects no value tomorrow."
The Australian lender has extended its offer twice, and investors now have until 26 February to decide whether or not accept it.
According to press reports, Macquire may be considering raising its bid, though that has not been confirmed by the bank.