Liffe 'mulls takeover bids'

The board of London's Liffe derivatives exchange is rumoured to be locked in a meeting to assess two rival takeover bids.

Euronext, which was formed by the merger of the leading exchanges in Paris, Brussels and Amsterdam, is thought to have presented an outline bid for Liffe late on Monday evening.

This would compete with an approach from the London Stock Exchange (LSE).

Liffe is seen as an important strategic asset for exchanges due to the globalisation of trade.

Bidding war

Insiders say the Euronext bid would have substantially topped that entered by the LSE

Euronext's offer is estimated at up to £400m ($580m).

While the London Stock Exchange has made no secret of its approach to buy Liffe, it has not yet revealed a price for its bid.

Insiders have valued LSE's offer at between £343m and £370m.

Some analysts expect a bidding war to follow, although both Euronext and the LSE have been shying away from making the first formal offer.

Aggressive ambitions

Euronext has an aggressive expansionist policy and aims to be the leading stock market in Europe.

And some analysts say a successful takeover of Liffe, could pave the way for Euronext to make an eventual takeover bid for the LSE itself.

LSE and Euronext are seen as the frontrunners in the battle for Liffe, although Nasdaq and the Chicago Mercantile Exchange were also involved in preliminary talks.