European bourse operator Euronext and rival Deutsche Boerse could discuss a merger as an alternative to bidding for the London Stock Exchange, the Independent on Sunday newspaper said.

"(Euronext Chief Executive Jean-Francois) Theodore is due to meet with Deutsche Boerse's new Chief Executive Reto Francioni and will raise the prospect of a possible merger," the paper said.

Euronext has come under pressure from shareholders such as hedge fund Atticus Capital to ditch plans to take over the LSE and seek a tie-up instead with its German rival, according to media reports last week.

Copyright Reuters, 2005