The London Stock Exchange is pressing ahead with its plan to launch an Italian version of its Alternative Investment Market for small and mid-cap companies, perhaps as early as this year, despite an attack on the junior market by one of the UK’s leading private equity investors.

The LSE, Europe’s most valuable equities market which merged with the Italian exchange operator three months ago, first hinted in November it was planning to develop Aim in Italy. A source close to the exchange said today the service may be live before the end of this year.