Nasdaq’s CEO, Bob Greifeld, has met the London Stock Exchange’s two largest shareholders to discuss a higher offer for the exchange. Investors are beginning to anticipate a bid above £12 ($21) a share.

The Times (London) reports: “One signficant shareholder in the LSE, the New York fund D E Shaw, which has about 1.4 percent, was revealed to have bought a further parcel on Wednesday at prices between £11.57 and £11.67. LSE shares, after strong advances in recent days, eased back 10p to £11.75.”

Greifeld is said to have met with representatives of Threadneedle Investments, which holds 14 percent of the LSE, and which earlier this week called for talks with potential bidders, and Scottish Widows, holder of 7 percent.

Nasdaq has made no secret of the fact that it is prepared to go over the heads of the LSE board by launching a hostile bid direct to shareholders.

Nasdaq refused to confirm or deny the meetings took place.

“The funds failed to return calls. The sensitivity of the situation means the City Takeover Panel will be watching closely to ensure there are no market-sensitive leaks.”

Hovering in the background with an anticipated offer is another potential suitor, the New York Stock Exchange, which is also refusing to comment.

The Times suggests the NYSE “is expected to play a long game and see how the situation with Nasdaq pans out. It is thought unlikely that LSE investors will accept any price from Nasdaq before seeing what the NYSE is prepared to offer.”