Bizarre love triangle

10 May 2005 By Chris Hughes

With no CEO, Deutsche Boerse is vulnerable to a merger approach from Euronext. But a deal would face big regulatory and integration issues. A deal between Euronext and the LSE, which shares its model, would be easier to implement if Euronext investors let it pay a premium.

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TCI, the hedge fund behind the successful campaign to oust Deutsche Boerse's chairman and chief executive, said a merger between the German exchange and FrancoDutch rival Euronext would be a fantastic idea.

In terms of business model, both fit together. It would make more sense than an expensive acquisition of the London Stock Exchange, TCI analyst Patrick Degorce told AFX.

Both Euronext and Deutsche Boerse are awaiting a response from the UK Competition Commission to their proposals to buy the LSE. The Commission is due to report in July.

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