The London Stock Exchange upped its growth predictions for electronic trading and outlined plans for a bigger-than-expected shareholder cash return for its defence against a hostile £2.9bn (€4.4bn) takeover by Nasdaq. Its US rival responded by attacking the LSE's "failure" to provide a long-term term strategy and by warning shareholders it would not revise its bid after the expiry of a Takeover Code deadline.

The growth prediction and plans for the cash return were revealed in a circular posted today, just two days ahead of a deadline to submit new information, to shareholders in the LSE, which has strenuously maintained its rejection of Nasdaq's attempts to merge the two exchanges.