Euronext 'more modern than LSE'

EURONEXT beat the London Stock Exchange in the battle for Liffe because it is more commercial and forward-thinking, according to the biggest shareholder in the London futures market.

Scott Tobin, a partner in Battery Ventures, the US venture capitalist that holds 20% of the futures exchange, said the Continental exchange was better placed than London to abolish the old-fashioned constraints that made stock exchanges 'fuddyduddies'.

Tobin hinted that Battery would invest in Euronext at least some of the £110m from selling its Liffe interest, saying he might join the Euronext board.

Battery has agreed to accept Euronext's cash offer of £18.25 a share for Liffe, preferring it to the LSE's cash and paper offer that valued Liffe at £19 a share.

Tobin said Euronext's plan for Liffe was crucial. 'We don't want to be known as the company that makes a lot of money by backing all the three-headed monsters,' he said. 'Euronext is in a much better position to drive innovation.'

Tobin also said the Liffe board had planned to float and believed it would have been in a position to make a bid for the LSE within three to four years.

Euronext's offer values Liffe at £555m compared with the LSE's current value of £1bn.