Shares in London Stock Exchange Group jumped more than 16 per cent to 2,689p in lunchtime trading, after reports emerged that it is talks with its German rival, Deutsche Boerse, over a merger.
The London Stock Exchange subsequently confirmed the talks.
"The boards believe that the potential merger would represent a compelling opportunity for both companies to strengthen each other in an industry-defining combination, creating a leading European-based global markets infrastructure group," the group said.
London-based boutique investment bank Robey Warshaw is advising the LSE on the deal.
[stockChart code="LSE" date="2016-02-23 13:45"]
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