Qatar Investment Authority and Borse Dubai now own 48 per cent of the LSE, following a complex series of deals in which ownership of Europe's exchanges is being realigned.

Borse Dubai secured 28 per cent of the LSE as part of a wider deal with the United States-based Nasdaq to settle their long-running battle for control of the Nordic exchanges and technology operator OMX. The Dubai group bought most of Nasdaq's 31 per cent stake in the LSE for £14.40 a share in cash. In return, it will take a 19.9 per cent stake in the combined Nasdaq/OMX group and receive cash.

However, the move enraged the Qatar Investment Authority (QIA), which until Tuesday night believed it was close to clinching a deal to buy much of the LSE stake for itself.

It responded on Thursday by buying nearly 20 per cent of the LSE, sparking expectations of a bidding war for the exchange. The LSE on Thursday welcomed the Qatari move because it sees QIA as a passive investor.

LSE shares soared on Thursday, closing £2.34 higher at £16.87.

FINANCIAL TIMES