6 Oct 2005, 18:04 GMT - The operator of the London exchange has been the subject of intense takeover speculation for several months, which culminated in the Deutsche Boerse offering 530 pence per share to acquire it. This bid was subsequently rejected, leaving observers to suggest that any Macquarie led consortium will have to make an offer in excess of Boerse's bid.

According to the report in the Daily Telegraph, a bid could be launched within days, though the precise timetable remained unclear. Macquarie Bank admitted in August that it was contemplating a cash offer for LSE, and insists it has nothing further to add despite these latest rumors.

Macquarie is Australia's largest investment bank and already has sizeable infrastructure assets in the UK, including Bristol Airport. It also has a sizeable asset management arm, but an expansion into stock market operation would be a new departure for the group.

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