The courting of the London Stock Exchange (LSE) continues, and the latest stock market to express an interest in a merger is Euronext, the alliance of the Paris, Brussels and Amsterdam bourses.

Praising the LSE's potential for growth as "enormous", Euronext boss Jean-Francois Theodore told the French Chamber of Commerce in London that "we are there, available and friendly" with respect to striking an alliance.

Nasdaq, the US-based market for technology stocks, said earlier this week that there was "a logical potential partnership with the London Stock Exchange" and proposed "friendly talks" as well.

The LSE has just survived a hostile takeover bid from the owners of the Stockholm stock exchange, OM Group. An earlier attempt by the LSE's management to merge with its Frankfurt rival Deutsche B�rse to form the iX - or international exchange - floundered amid opposition from shareholders.

'Balanced co-operation'

Mr Theodore said Euronext was "ready to pursue a balanced co-operation with the London Stock Exchange".

However, he did not explain what kind of co-operation he was hoping for, and a Euronext spokeswoman declined to elaborate either.

Euronext's main selling point is technical. According to Mr Theodore, the share trading systems of London and the Euronext alliance are very similar.

The City could therefore keep using its Sets share trading system.

The iX alliance would have seen London to adopt the German Xetra system, a suggestion resented by many City traders. Sweden's OM Gruppen had planned to introduce its own technology solution to London as well.

Another issue that troubled the iX plans was the question whose stockmarket regulations would apply where. Mr Theodore promises that London can keep its own regime, as the multi-national exchange has a "multi-jurisdictional approach".

The Lisbon stock exchange is currently pondering whether to join the Euronext alliance, while Luxembourg signed on Thursday a deal that allows cross-trading of shares between both markets.

Alliance, merger or take-over?

Since the collapse of the iX deal, London has been seen as being vulnerable to a take-over bid.

The LSE's management insists that the market is capable of going it alone, and pursue an independent expansion course in Europe and elsewhere.

But if the LSE's chairman, Don Cruickshank, fails to persuade shareholders of the strength of his plans, some sort of deal could be inevitable.

Both the Nasdaq and Euronext have declined to discuss what kind of a link-up they envisage.

It could be a simple alliance of equals, allowing investors access to both markets. An exchange of stock could cement such a relationship.

A friendly merger would be an alternative, with both exchanges being run by the same management team.

The worst that could happen to the LSE's management is a take-over by another market - although it would probably take a giant like the Nasdaq or the New York Stock Exchange to really pull off such a trick.