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London Stock Exchange profit jumps, detailed talks about Deutsche Boerse merger continue

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By Euronews  with Reuters
London Stock Exchange profit jumps, detailed talks about Deutsche Boerse merger continue

<p>The London Stock Exchange Group has reported a 31 percent jump in adjusted pre-tax profit for 2015.</p> <p>That was just short of what analysts were hoping for and its share price fell on Friday. </p> <p>Announcing the results <span class="caps">LSE</span> – which also owns Borsa Italiana – said detailed discussions are continuing with Germany’s Deutsche Boerse about a merger.</p> <p>It called the logic of a tie-up between the two “compelling“with substantial revenue and cost benefits for the pan-European trading powerhouse it would create.</p> <p><span class="caps">LSE</span>’s chief executive Xavier Rolet promoted it as a true <a href="http://blogs.reuters.com/breakingviews/2016/03/04/lse-merger-of-equal-ness-is-a-red-herring/">merger of equals</a>.</p> <p>Intercontinental Exchange, which owns the New York Stock Exchange, is also considering a bid. </p> <p>Deutsche Boerse and the London Stock Exchange are making a third attempt at getting together to take on US rivals encroaching on their turf.</p> <p>Nearly 16 years after their first merger attempt, the London and Frankfurt exchanges are discussing an all-share deal giving Deutsche Boerse shareholders a 54.4 percent stake and <span class="caps">LSE</span> shareholders 45.6 percent of a new company.</p> <p>It would combine the <span class="caps">LSE</span>’s share-trading operation with the derivatives trading of Deutsche Boerse’s Eurex in a group worth almost $30 billion (27.4 billion euros). It would give the companies similar scale to Intercontinental Exchange, which has taken a huge slice of the European derivatives markets.</p>