Plus Markets, the troubled junior stock exchange which this morning announced it had decided to close after failing to find a buyer, had been in discussions with a boutique Middle Eastern lender until talks broke down in the early hours of this morning, Financial News has learned.

The exchange, which had up to 10 expressions of interest when it first announced it was up for sale, was locked in talks with its last remaining bidder, the Gulf Merchant Bank, until late last night. According to two sources familiar with the situation, talks broke down with the Dubai-based lender at around 01.30 BST this morning.