Euronext looks like the underdog in the battle to acquire London Stock Exchange. On every financial measure, Deutsche Börse is between 80% and 100% bigger. The Frankfurt exchange also has cash of about e500 million, versus Euronext's e200 million. If Deutsche Börse offered £1.5 billion ($2.9 billion) in cash for the LSE, 600p a share, could Euronext stay in the game?
It could – but at a stretch. The French-led exchange would have to tap the bond markets for as much debt as possible. If...
