Macquarie to make hostile LSE bid

Australia's Macquarie Bank is ready to launch a hostile bid for the London Stock Exchange before December 15, the deadline for an offer set by the Takeover Panel, the Sunday Telegraph newspaper reported.

Without citing sources, the newspaper said last-minute preparations were being made to structure a deal that would allow the LSE's users - banks and brokerages - to participate in an offer by holding shares in a special investment vehicle that would make a bid on behalf of the Australians.

It said the final decision on whether to go ahead with an offer awaits the Macquarie board's approval.

Meanwhile, Britain's The Business newspaper reported on Sunday that the LSE had lined up OMX , the Swedish Stock Exchange, to act as a "white knight" should Macquarie make a hostile bid.

Quoting sources close to OMX, the newspaper said that the LSE and OMX are keen to resume talks, regardless of whether Macquarie bids by the December 15 deadline.

- REUTERS