PLUS Markets Group, (LON:PMK) which owns the PLUS London stock exchange, defended the position of the PLUS-SX's original bidder, ICAP (LON:IAP), after Gulf Merchant Bank attempted to start a bidding war.

PLUS, which provides listing and quoting services to around 140 companies on the stock exchange, was offered £1 in cash by ICAP on 18 May.

GMB's letter to PLUS yesterday contained a proposal with a headline consideration that appeared to be greater than that offered by ICAP, said PLUS.

However it concluded that overall the GMB proposal is “materially less attractive” than the ICAP offer, in terms of the overall financial benefit for shareholders. 

PLUS added it believed ICAP to be an “appropriate” owner of the stock exchange having proved itself as a FTSE 100 company that can successfully manage and grow high turnover electronic platforms.

ICAP already acts as a broker in exchange products and is a full member of the world’s largest exchanges.

PLUS said: “Accordingly, on the basis of the currently available information, the board continues to recommend the Proposed Disposal of PLUS-SX to ICAP, as described in the circular.” 

PLUS Markets Group shareholders will get the chance to vote on the takeover on 18 June.

The Plus Market share price is up 3.5 per cent on the news to 0.4 pence.