Euronext, fighting Deutsche Börse to control the London market, today pledged any takeover offer it made for the London Stock Exchange is "likely to be solely in cash".

The pledge comes as sources close to the pan-European exchange said any bid is likely to be financed by debt underwritten by a consortium of banks including Morgan Stanley and ABN Amro, Euronext's existing M&A advisers, and BNP Paribas, which been drafted in specifically to raise finance for an offer.