May 21, 2006	Sunday	Rabi-us-Sani 22, 1427

NEW YORK, May 20: The NYSE Group Inc. is finalising a proposal for a merger with European stock exchange operator Euronext and is expected to make an offer this weekend or Monday, The Wall Street Journal reported on Saturday.

The NYSE Group, operator of the New York Stock Exchange, has said it wants to participate in any cross border consolidation between US and European exchanges but Chief Executive John Thain has declined to comment on reported talks with Euronext and the London Stock Exchange.

However after months of speculation and various negotiations on tie-ups, the stock exchanges are scrambling to meet a tight deadline. Euronext has said it wants to present proposals to shareholders at its annual meeting next Tuesday.

The Wall Street Journal citing people familiar with the matter said Thain was this weekend finalising a proposal for a merger with Euronext that he hoped would beat a rival offer outlined by the Deutsche Boerse.

The NYSE, the No. 1 US stock exchange, has declined to comment on its plans.

Merging with Euronext, the operator of the Paris, Amsterdam, Brussels and Lisbon stock exchanges, would create the first major trans-Atlantic stock exchange operator — trumping attempts by Nasdaq, the No. 2 US stock exchange, to take over the LSE.

Exchanges globally are racing to consolidate to boost volumes, reduce trading costs and attract more company listings.

Sources told the newspaper that the NYSE’s proposed offer was likely to be all stock and create a new publicly listed company with its main listing in New York but offering Euronext plenty of autonomy, including on the issue of regulation.

It reported that Euronext management had indicated to some fund managers that it favours a merger with NYSE over Deutsche Boerse because a Big Board deal will likely leave Euronext with greater autonomy in Europe than would a deal with a Continental partner.—Reuters