Germans deny LSE takeover plan

THE company that operates the Frankfurt stock exchange has denied it plans a hostile takeover bid for the London Stock Exchange. Shares in the LSE jumped on weekend reports of a possible tie-up between the LSE and Deutsche Börse.

'We Germans traditionally mark the beginning of April with April Fool's jokes,' said Deutsche Börse chief executive Werner Seifert. 'My best guess is that this is the English way of starting the month.'

LSE shares moved up 9p to a new high of 442p, valuing the London exchange at £1.31bn. Its Frankfurt-based rival is worth e4.87bn (£3bn). Its shares climbed e1.25 to e48.40. The two exchanges abandoned a merger in 2000, scuppered mainly by the LSE's private-client stockbrokers.

Deutsche Börse said its profits would grow by at least 15% this year. 'Diversified sources of revenue and further increases in efficiency form the basis for stability even in difficult market conditions,' finance director Mathias Hlubek said.

'Based on our prognoses for last year, which we have surpassed by far, we are also expecting 10% to 15% growth in sales for the current business year as well as even higher growth in profitability before writedowns and one-time effects.' Sales grew 17% to e760m in 2001 and earnings before interest and tax rose by 28% to e278m.