Pan-European exchange operator Euronext has revealed details of its proposed bid for the London Stock Exchange but has still not disclosed what it would be prepared to pay for the UK market operator.
Euronext, which owns the Paris, Amsterdam, Brussels and Lisbon exchanges, says a merger with the LSE would lead to annual savings of around EUR203m - over twice as much as Deutsche Börse rival offer - with total restructuring and revenue investment costs of EUR184m.
The exchange operator says it would cut costs by EUR152m a year in the second year after merger, which includes savings of EUR94m from the overhaul of the combined group's IT systems and the consolidation of UK IT services in one data centre with a single network.
Euronext has promised to keep the LSE in London and says the UK exchange would continue to be regulated by the Financial Services Authority (FSA). Last week the FSA called for wider discussions of the long-term implications of any change in LSE ownership and assurances that the regulation of LSE listed companies remain in the UK. Euronext says it would create a unitary single tier board and seek a dual primary listing in London and Paris, moves which it says take into consideration the key concerns of the City of London and the FSA.
Euronext would also match Deutsche Börse's 10% fee reductions for investors.
The German exchange released details of its £1.35bn bid for LSE two weeks ago, which it said would lead to savings of EUR100m. The LSE has now rejected Deutsche Börse's bid twice, saying that the cash offer undervalued its business.