Deutsche Börse, the German securities and derivatives exchange operator, has called off its merger talks with Borsa Italiana, blaming irreconcilable short-term disagreements. The decision comes as a blow to its attempts to push through a European tie-up with Euronext and derail a rival offer from the New York Stock Exchange.

Borsa Italiana and Deutsche Börse signed a letter of intent to merge last month, as first reported by Financial News, aimed at putting pressure on Euronext to consider a three-way European merger instead of joining forces with the New York Stock Exchange.