The German stock exchange, Deutsche Börse, says it considers Euronext its most likely merger partner.

Deutsche Börse CEO Reto Francioni said he favours a combination of Deutsche Börse and Euronext as the best option for customers and shareholders, as well as for the financial centers involved. “A transaction must be economically compelling, strategically attractive, and politically viable,” he said.

Deutsche Börse says it supports the proposed partnership. The exchange says the organization and structure of a European stock exchange group must take into account the interests of the respective financial centers, while being both efficient and clear.

It adds that it intends to take a fundamentally pragmatic approach to consolidation without giving up material parts of its business portfolio, such as settlement and custody activities. It notes that a combination of Deutsche Börse and Euronext could be a key contribution toward the creation of a European trading and clearing infrastructure.

The firm also reports that it closed financial year 2005 with new records in sales revenue and earnings. According to the preliminary figures published by the company, sales revenue climbed by 13% to €1,631.5 million in 2005 (2004: €1,449.6 million). The company earned a further €112.7 million in net interest income from banking business (2004: €77.1 million). Consolidated net income for 2005 reached €427.4 million from €266.1 million last year.

Francioni says, “The preliminary results mark 2005 as the most successful year in the company’s history. In 2006 we will set the course and continue to build momentum for Deutsche Börse. We are confident about the future.”

CFO Mathias Hlubek adds, “The outstanding revenue and results performance was achieved through significant growth across the company’s core businesses and continued cost discipline. The results prove one more time the strength of our business model. The promising start to the year shows sustained growth across the company’s core business.”