THE battle for the London Stock Exchange intensified last night when an Australian bank confirmed it was considering a takeover bid.

Macquarie Bank said its deliberations were at the most preliminary of stages and any formal offer would be made through a consortium and probably in cash.

Its interest threatens to disrupt the plans of pan-European exchange Euronext, which is awaiting the final outcome of a Competition Commission inquiry into an earlier takeover approach.

Any offer would have to be higher than the 530p a share, or the £1.35bn already put forward by German suitor Deutsche Boerse, which was rejected last year by the LSE as too low.

Shareholder unrest later forced Deutsche Boerse to the sidelines.

In a statement yesterday, Macquarie said it was "considering a number of potential acquisition opportunities, which includes a possible formal approach being made to the London Stock Exchange".

The bank said: "If any bid were made, it would be as part of a consortium and, if any such offer is made, it is likely to be solely in cash."

The LSE is understood to be demanding at least 600p a share, or £1.5bn.

Macquarie typically focuses on property and infrastructure, such as roads and airports, but the acquisition of the LSE would fit its model of buying a business with solid earnings and the potential to increase fees.

It would also broaden its presence in Europe, where the bank owns Isle of Wight ferry operator Wightlink and has a controlling stake in South East Water, which supplies water to about 1.5 million people in the UK.

Macquarie also has a 31 per cent interest in gas distribution company Wales and West Utilities and is the sole owner of Energy Power Resources, which owns and manages the UK's largest portfolio of biomass-fuelled renewable energy assets.

Last month, the Competition Commission said that a takeover of the LSE by Deutsche Boerse or Euronext would substantially lessen competition.

A bid from Macquarie would not be hampered by such concerns.