BOB GREIFELD, the chief executive of Nasdaq, has met the two biggest shareholders in the London Stock Exchange to discuss a higher offer for the exchange as investors scented a bid at above £12 a share.

One signficant shareholder in the LSE, the New York fund D E Shaw, which has about 1.4 per cent, was revealed to have bought a further parcel on Wednesday at prices between £11.57 and £11.67. LSE shares, after strong advances in recent days, eased back 10p to £11.75.

Mr Greifeld is thought to have met Threadneedle Investments, with 14 per cent, which earlier this week called for meetings with potential bidders, and Scottish Widows, with 7 per cent. Late last week the exchange rejected a Nasdaq offer of 950p a share that valued it at £2.4 billion.

Nasdaq has made no secret of the fact that it is prepared to consider a higher offer, or a hostile one that is put direct to shareholders such as Threadneedle over the heads of the LSE board.

Advisers to Nasdaq refused to comment or to confirm the meetings took place. The funds failed to return calls. The sensitivity of the situation means the City Takeover Panel will be watching closely to ensure there are no market-sensitive leaks.

Waiting in the wings is another potential suitor, the New York Stock Exchange, which is refusing to comment but is expected to play a long game and see how the situation with Nasdaq pans out. It is thought unlikely that LSE investors will accept any price from Nasdaq before seeing what the NYSE is prepared to offer.

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