While discussions between the London Stock Exchange and the Deutsche Börse continue, the latter's May 4 meeting to ask shareholders to approve a capital increase for an initial public offering looms. Euroboard, the firm that runs Europe's second largest equity market, wants to list as much as 30% to 45% on the Neuer Markt. Although some estimates put the price tag at around

Any valuation, says a recent report by Dresdner Kleinwort Benson, should reflect that the group is not a mainstream financial company but a business services company with a strong technology and new economy component. The group also differs in that its exchanges, trading systems and clearing and settlement services facilitate and support the activities of a range of financial service providers. Looking ahead, the German bank predicts that group sales will jump 30% annually in the three years through to 2002 while earnings before interest and taxes would climb by 56%.