Euronext has come away from talks with the London Stock Exchange (LSE), but offered no comment on any agreement or outcome.

Euronext is believed to be readying a £1.4 billion bid for the LSE, and is in competition with rival company Deutsche Boerse, who may yet offer a £1.5 billion offer to share holders.

However, there is growing disquiet in Germany over Deutsche Boerse’s suggestion that it could move its headquarters to London. This could lead to hundreds of job losses in Frankfurt, and all at a time when the German economy is still recovering from recession.

Deutsche Boerse’s current ownership of Clearstream, a clearing house that processes securities transactions, is still seen as an objection to any bid for the LSE due to fears of monopolisation of services and reduced competitiveness for investors.

Tags: European Economy News //