LSE hits new peak on takeover talk

SHARES in the London Stock Exchange soared amid speculation of a takeover bid. The shares shot up 33p to a peak 400p, with more than 3m changing hands. That values the LSE at nearly £1.2bn. Likely predators include Germany's Deutsche Börse - whose attempt to merge with the LSE last year failed - and US tech market Nasdaq.

JP Morgan Securities bought nearly 40,000 shares at 368p, taking its stake up to 1.25%. Other buyers included UBS Warburg and CSFB Equities. A market source said: 'There has certainly been a pretty aggressive movement in the shares.'

The LSE recently suffered an embarrassing failure in its attempt to take over futures market Liffe, which went instead to Continental rival Euronext, another potential bidder for the Exchange itself. Chief executive Clara Furse is under mounting pressure to come up with an alternative strategy folllowing the Liffe setback, or be snapped up by a competitor.