The London Stock Exchange appears set to beat off competition from Markit to take over LCH.Clearnet after securing backing from the clearer's board for a deal.
According to Reuters, citing a source, LCH.Clearnet's board - made up of its biggest clients - decided to back the LSE's EUR21 a share bid for a 51% holding over Markit's EUR15 per share offer for the entire business.
The agreement still needs to be nodded through by the London-based clearer's 98 members.
A deal would be a major boost for the LSE following the collapse of its takeover of Canada's TMX Group and in the face of the threat posed by the proposed merger of Deutsche Börse and Nyse Euronext, set to create a powerhouse in derivatives trading and post-trade clearing services.
Update: In a statement released Wednesday morning LCH.Clearnet Group Limited confirms that it has entered into "exclusive discussions with London Stock Exchange Group plc regarding a possible transaction. There can be no certainty that the discussions will result in any transaction."