NYSE bid for LCH would give Markit OTC biz: source

Reuters

NEW YORK (Reuters) - NYSE Euronext's <NYX.N> bid for European clearinghouse LCH.Clearnet would give Markit a majority stake and control of the lucrative over-the-counter swaps business, a source familiar with the plan said on Wednesday.

NYSE Euronext would have the option to increase its stake in LCH.Clearnet to 40 percent from 9 percent now, and it would get control of the Paris-based "Clearnet SA" through which it would clear European share trading, said the source, who was not able to speak on the record.

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Markit, a privately held data provider owned by banks and others, partnered with the New York Stock Exchange parent to bid for London-based LCH.Clearnet in the last few weeks.

LCH.Clearnet confirmed it has received offers from exchanges about a tie-up, but that talks are at an early stage. A spokeswoman had no further comment.

Last week, a separate source said Nasdaq OMX Group <NDAQ.O> made an offer for LCH.Clearnet. London Stock Exchange Group Plc <LSE.L> said it is not among those in talks.

Earlier on Wednesday, NYSE Euronext Chief Executive Duncan Niederauer confirmed last week's press reports of the bid, telling analysts at a Deutsche Boerse investor day that Markit is leading the effort.

NYSE Euronext, meanwhile, is planning a $10 billion merger with Germany's Deutsche Boerse AG <DB1Gn.DE>.

Markit declined to comment on Wednesday. A NYSE Euronext spokesman had no immediate comment.

(Reporting by Jonathan Spicer. Editing by Robert MacMillan)