Australian Exchange denies LSE interest.

THE Australian Stock Exchange yesterday reportedly played down rumours it was eyeing Nasdaq's 31% stake in the London Stock Exchange.

Australia's ASX is understood to have denied speculation it was in the running for the holding, saying it was "not intending to purchase Nasdaq's stake at this time", according to reports.

The group, which owns the Australian Stock Exchange and Sydney Futures Exchange, was said to be one of around six potential suitors that had approached Nasdaq and were interested in the stake, put up for sale last week.

Other groups that are believed to be in the frame include Deutsche Borse, NYSE Euronext, Macquarie and Borse Dubai.

Investment group Temasek, which is backed by the Singapore government, is also thought to be a strong contender, according to reports over the weekend.

Nasdaq announced last week it was looking to sell the stake, worth around pounds 800m, which it built up in the LSE during its failed takeover attempt of the exchange.

The New York bourse failed to win backing from LSE shareholders for its pounds 2.7bn hostile bid in February.

Nasdaq is expected to announce the sale of its stake before the end of October, as its holding will be reduced to 22% early next month when the LSE issues new shares to finance its pounds 1.1bn takeover of Italy's Borsa Italiana.

Nasdaq's defeat earlier this year to take over the LSE marked the second time in less than a year that the London exchange had successfully fended off unsolicited and aggressive takeover approaches.

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