Macquarie considers bid for London Stock Exchange

SYDNEY - Australia's top investment bank, Macquarie Bank Ltd, said it may team up with other investors to make a cash bid for the London Stock Exchange Plc, which has a market value of £1.4 billion ($3.58 billion).

Macquarie said the London exchange 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.

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

Britain's Sunday Times newspaper reported on the weekend that Swedish exchange operator OM Gruppen was also considering an offer for the London exchange.

Pan-European exchange Euronext and Deutsche Boerse were vying for the LSE until March, when Deutsche Boerse pulled out after shareholders demanded it return a huge cash pile to its owners instead of making costly takeovers.

Britain's competition watchdog warned in late July a takeover of the LSE would harm competition unless there were steps to cede control of clearing services. The final conclusions of the Competition Commission are due to be released on September 12.

Shares in Macquarie rose 0.9 per cent in early trade to A$64.12 ($70.81) in a weaker overall market.

- REUTERS