Fresh off a deal for a Spanish competitor, Swiss exchange operator SIX returns to dealmaking by bidding for Italy's trading venue. What is it doing to head off competition from major European rivals?

SIX submitted a bid for Milan-based Borsa Italiana, the Swiss stock exchange operator told Swiss newswire «AWP» (in German),  confirming recent reports in Italian media including «Corriere della Sera». Borsa Italiana's owner, the London Stock Exchange, needs to sell in order to win European backing for its takeover of Refinitiv, a data and analytics company.

Zurich-based SIX is offering its Italian counterparts board and management representation and is aiming for a friendly takeover, according to the «AWP» report. In July, SIX became the third-largest trading venue in Europe after Euronext and the London Stock Exchange, after clinching the $3 billion takeover of Madrid's Bolsas y Mercados, or BME.

Bigger European Rivals

SIX, which has cash to spare even after BME, is mounting a charm offensive to court Borsa Italiana, according to «Reuters». This includes an investment plan including a digital upgrade of Borsa, the agency reported.

The Swiss bid faces rival ones from Deutsche Boerse and Euronext of France. The German exchange is promising Bolsa operational independence, Italian management and oversight, and a consortium of Italian minority shareholders of up to 49 percent as long as it can clinch a controlling stake, «Reuters» said.