European exchange service Euronext will partner with Borsa Italiana, the Italian stock market operator, to pursue a takeover bid for electronic bond platform MTS.

News of the MTS bid comes as Paris-based Euronext discovered it has become the main suitor for the London Stock Exchange, after German trading technology provider Deutsche Boerse pulled out.

It is thought that Euronext, who already owns about 22% of MTS France, a subsidiary of MTS Group, has been wooing MTS for over a year. If successful in its acquisition proposal, the company is expected to own 54% while Borsa Italiana will get 46%.

MTS, who handles eurozone government bonds, is said to be considering a shortlist of 17 offers from firms including the Chicago Board of Trade, Icap, Thomson and private Carlyle, but reports have suggested that the bid from Euronext and Borsa Italiana is the front runner due to their pan-European structure and Euronext’s history of joint ventures with the platform.

The acquisition of MTS will add strength to Euronext’s competitive stance against rival Deutsche Börse, who announced that it would not be fighting for the platform.