german bidder in talks with lse deutsche boerse bosses have held  constructive  professional and friendly  talks with the london stock exchange (lse)  its chief has said.  werner seifert met lse chief executive clara furse amid rumours the german group may raise its bid to £1.5bn ($2.9bn) from its initial £1.3bn offer. however  rival suitor euronext also upped the ante in the bid battle. ahead of talks with the lse on friday  the pan-european bourse said it may be prepared to make its offer in cash. the paris-based exchange  owner of liffe in london  is reported to be ready to raise £1.4bn to fund a bid.  the news came as deutsche boerse held its third meeting with the lse since its bid approach in december which was turned down by the london exchange for undervaluing the business. however  the lse did agree to leave the door open for talks to find out whether a  significantly-improved proposal  would be in the interests of lse s shareholders and customers. in the meantime  euronext  which combines the paris  amsterdam and lisbon stock exchanges  also began talks with the lse. in a statement on thursday  euronext said any offer was likely to be solely in cash  but added that:  there can be no assurances at this stage that any offer will be made.  a deal with either bidder would create the biggest stock market operator in europe and the second biggest in the world after the new york stock exchange. however  neither side has made a formal offer for the lse  with sources claiming such a step may still be weeks away.  deutsche boerse could also face mounting opposition to a bid at home. among sweeteners reported to have been discussed by mr seifert with ms furse were plans to move the management of its cash and eurex derivatives market to london  as well as two members of its executive board. but  hans reckers  a board member of germany s central bank  the bundesbank  said that cash trading should also remain in frankfurt  something deutsche boerse could move to the uk.  it is not just the headquarters of the boerse but also important market segments that must stay permanently in frankfurt. this has special importance for the business activities of the banks and the consultants   he said. local government officials in frankfurt s state of hessen have also spoken out against the move.  it is our wish that the headquarters stay here to maintain frankfurt s standing as the number one financial centre in continental europe   alois rhiel  its minister for economic affairs added.