Euronext confirms bid for Italian markets operator

Euronext, which owns the Irish Stock Exchange, has submitted an offer for exchange operator Borsa Italiana, pitting it against Frankfurt's Deutsche Boerse in a battle for EU dominance.

Euronext said it has made a joint bid with Italian state-backed lender Cassa Depositi e Prestiti (CDP) and Italian bank Intesa Sanpaolo.

Borsa Italiana operates the huge Milan stock exchange and is being sold by the Londo Stock Exchange. A deal will value the Italian exchange at around €4bn.

The German exchange said in a statement late Friday that it was “offering a high value for the future growth and development of an autonomous Borsa Italiana Group, thereby strengthening its crucial role for the Italian economy and the European capital markets.

Euronext confirmed its submission of a non-binding offer to London Stock Exchange Group plc to acquire Borsa Italiana on Monday.

Euronext operates the Paris and Amsterdam stock markets, as well as Dublin and other smaller exchanges but Italy would be the largest revenue contributor to the enlarged Euronext group if a deal goes ahead.

"This transformational project would effectively position the newly formed group to deliver the ambition of further building the backbone of the Capital Markets Union in Europe, while at the same time supporting local economies," Euronext said.