LSE may bid for Dubai exchange

LONDON, England - The London Stock Exchange may be going on the acquisition trail again in an effort to fight off growing competition from other market operators.

The LSE is in talks to buy the Dubai Stock Exchange, according to London's Sunday Telegraph, after failing in previous attempts to merge with other operators.

The London exchange, which is Europe's top share market and is valued at about £1.3 billion ($1.87 billion), is competing for listings with German stock exchange operator Deutsche Boerse and pan-European bourse Euronext.

Speculation about the LSE's future comes one week after reports that German stock exchange operator Deutsche Boerse was preparing to make another bid for the exchange.

Deutsche Boerse denied the reports, but industry watchers still believe a merger of the two exchanges was still possible -- if the LSE offered the right price.

Merger talks between the two exchanges collapsed 18 months ago, and both failed in their separate attempts last year to buy London's LIFFE futures and derivatives exchange. LIFFE was eventually bought by Euronext.

Meanwhile, Euronext said it is ready to outbid any rivals for ownership of the LSE, London's Mail on Sunday reported.

LSE shares were down 0.5 percent in midday trading in London on Monday, while Euronext slipped 1.7 percent in Paris and Deutsche Boerse rose 0.8 percent in Frankfurt.

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