Germans push for agreed deal on Exchange

WERNER Seifert, head of Germany's Deutsche Borse intends to send a formal document to the London Stock Exchange addressing concerns over clearing, settlement and regulation in the hope of pushing through an agreed deal.Arch-rival Euronext is thought to have made an informal approach to the LSE about a counter-offer. There were a few red faces at Euronext yesterday after its second technical blunder in a week. Trading at its Paris, Amsterdam, Brussels and Lisbon exchanges was disrupted for more than two hours due to an electronic breakdown.

Euronext has beefed up its team of advisers, taking on ABN Amro and Morgan Stanley alongside UBS, in a further indication it will counter Seifert's earlier £1.3bn proposal.

In an amicable meeting in London with LSE chiefs Clara Furse and Chris Gibson-Smith, Seifert yesterday outlined his belief that he can overcome the objections that derailed a merger attempt four years ago. The fact he wants an agreed deal suggests that he is likely to be open to increasing his 530p-a-share offer.

He will have to convince shareholders that he can deal with worries over Deutsche's 'vertical' ownership of clearing and settlement. Euronext's structure is closer to the LSE model.

As a testament to the LSE's growing internationalism, Air China floated on the Official List yesterday, the first Chinese float on the main market since 2000, valued at £558m.