IT could be drawn into a bidding war for LCH Clearnet after the London Stock Exchange (LSE) trumped its earlier bid.
The LSE is keen to flex its muscles in the wake of its collapsed merger with Canadian bourse TMX and a deal for LCH Clearnet would strengthen its position by giving it its own clearing house for its main share market. The deal would also strengthen it amid a period of market consolidation, which could soon see a merger between Deutsche Börse and NYSE Euronext, pending an EU probe.
But Markit is understood to be reluctant to let the prized asset slip through its fingers and could raise its bid higher than the LSE’s £900m.
LCH Clearnet and Markit declined to comment.