News of the proposed counter offer was reported by the Wall Street Journal. Nyse Euronext has yet to confirm the bid.

Borsa Italiana chief executive, Massimo Capuano, outlined a putative deal with the London Stock Exchange to board members at a meeting on Thursday. While the FT reports that no agreement was reached at the end of the meeting, Reuters was reporting late Friday that Capuano has been given the go-ahead to accept the LSE's offer.

Earlier on Thursday, the Italian market operator had exercised its call option right to purchase all the shares held by Euronext in MBE Holding, the joint venture company which owns 60.73% of electronic bond network MTS.

The acquisition of MTS would represent a prize asset for the LSE, extending its influence in the financial market to fixed income and bond trading. However, the move has reportedly upset MTS' minority shareholders in the investment banking community, who fear the implications for the future cost of trading and clearing and settlement on the platform.