Global Capital Markets

The Dubai International Financial Centre did make contact with Euronext executives to inform them it was increasing its stake in the exchange, but Euronext believes there is no basis for believing the centre intends to make a bid, it is understood. At the same time, a source close to Euronext has declined to say whether he thought the New York Stock Exchange appears keener to buy the London Stock Exchange or the pan-European house. But he pointed to an interview with NYSE chief executive John Thain in March in which Thain identified NYSE’s main M&A goals as being to broaden its product mix, through derivatives, and make strategic links with European exchanges. Earlier this month, another Euronext source indicated that one of the US exchanges had given the pan-European exchange the impression that it was its top target. Sources at Citigroup, NYSE’s adviser, declined to comment. A person close to Euronext said he could not say what NYSE’s preferences were, but the US exchange could well have given the European house the impression it was its prime target, he claimed. Euronext was sounding a more cautious note today over previous claims by sources close to it that it intended to recommend an approach to shareholders at its AGM on 23 May. Given the preliminary nature of the discussions between the exchanges and the unpredictability of the present situation, Euronext may be unable to do this, the exchange privately admitted. But a spokeswoman for Euronext said today that, whatever happened, the exchange would “make all the options clear” to its shareholders at the AGM, “and, if possible, give them a recommendation”. The first Euronext source commented that a three-way merger between exchanges was an unlikely outcome, given the huge complications of merging just two of these businesses. The Dubai International Financial Centre declined to comment.