Organisation: Deutsche Boerse

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Analysis and commentary by Echo Research.

The New Year City pages returned almost immediately to the pre-Christmas big story: the bid by Deutsche Boerse for the London Stock Exchange. Uppermost was the news that the Boerse was prepared to up its bid and compromise on every aspect of the deal, including the location of the new organisation's headquarters. Alongside the Boerse's conciliatory messages, however, were insiders' predictions that CEO Werner Seifert, known as Germany's Dr Jekyll and Hyde, would launch a hostile bid if spurned by the Stock Exchange a second time. "There is not the slightest chance that Seifert is going to walk away now"warned Scotland on Sunday (2/1), while the FT noted that "those who know Mr Seifert well believe he is likely soon to run out of patience and resort to a hostile bid"(3/1).

The clarity of Deutsche Boerse's messages was further undermined by the entry into the fray of Paris-based exchange Euronext, which, commentators agreed, had "more synergies"(Observer, 2/1) with the Stock Exchange. A mischievous Evening Standard (4/1) regurgitated a Financial Mail interview profiling Werner Seifert, his marriages, lurid allegations of an affair and his 'disgust' at having his private life raked over by voracious UK journalists. Should Seifert's bid for the LSE be successful, he may need to show his conciliatory side to the British media as well.