Deutsche Börse's offer of half price clearing and a 10% cut in electronic trading costs as part of a proposed £1.35bn (€1.94bn) all-cash bid for the London Stock Exchange has failed to win over the LSE. The UK exchange rejected the bid five hours after it was formally launched today.

Deutsche Börse's proposal to compete with the LSE's existing clearing provider LCH.Clearnet and undercut its prices is designed to address concerns among the exchange's customers that a successful bid would drive up fees and be anti-competitive.