The LSE previously rejected the bid as too low

The LSE accused Macquarie of trying to buy it "on the cheap" after the firm posted full details of its bid to the stock exchange's shareholders.

Along with the rejection came a set of strong trading figures from the LSE, prompting forecast upgrades.

Its share price hit a 670 pence high on Wednesday, valuing it at �1.7bn.

This was way above Macquarie's �1.5bn ($2.65bn) bid which, the LSE said, "ignored the quality and strength of the business".

It branded the offer as "derisory" when it was first tabled in December.

But Macquarie is determined to push ahead with what it says will be its one and only bid.

"The offer of 580 pence in cash per LSE share is the only offer available to LSE shareholders," Macquarie said on Tuesday.

It called the offer "attractive, certain and deliverable in cash".

Clock ticking

The bidder hopes to outflank rival suitors for the LSE such as Euronext and Deutsche Boerse.

The market is sending Macquarie a message that 580p is really not a price that's worth considering Mamoun Tazi, analyst See the LSE's share price

The Australian bank already has UK investments ranging from BBC Broadcast to the M6 Toll Road.

Under UK Takeover Panel rules, it needs to gain the backing of investors holding at least 50% of the LSE's shares.

To achieve this, Macquarie will have to win over some of the biggest shareholders, such as Threadneedle Asset Management and Scottish Widows.

Threadneedle Investments said on Wednesday it had bought more shares in the LSE on behalf of clients, taking its total holding to 12.75% of the company's equity.

"The market is sending Macquarie a message that 580p is really not a price that's worth considering," said Mamoun Tazi, analyst at Man Securities.

Earlier this week, the LSE announced a 16% increase in revenues in the third quarter to �210.6m, which has already increased its worth in the eyes of shareholders.

LSE chief executive Clara Furse said its performance "reinforces our dismissal of Macquarie's offer which entirely fails to recognise the value of the business".