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Deutsche Boerse in talks to buy Six stakes in JVs

Reuters - UK Focus

* Offer to by Six's stakes in JVs for 650 mln francs

* Six owns 49.1 pct of Stoxx, 50.1 pct of Indexium

* Equity indices business booming on ETF interest (Adds source comment, context, detail)

FRANKFURT, June 29 (Reuters) - Deutsche Boerse (Xetra: 63DA.DE - news) is in talks with Swiss Six Group to buy the remaining stakes in their equity index joint ventures Stoxx and Indexium for 650 million Swiss francs ($692 million), the two exchange operators said on Monday.

People familiar with the situation said Deutsche Boerse only recently approached Six with the acquisition prospect.

Six does not see global indices as necessarily part of its core business but it remains open whether the two exchanges will come to an agreement over the sale, the people added.

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Exchange operators have been keen to buy equity index business to boost revenue as the trend for large investors to track indices through, for example, Exchange Traded Funds (HKSE: 3085.HK - news) (ETFs) rather than making choices on individual stocks has grown.

Deutsche Boerse owns 50.1 percent of Stoxx AG and 49.9 percent of Indexium AG.

"The parties want to clarify all other contractual modalities in the upcoming negotiations," Deutsche Boerse said in a statement.

A successful conclusion would be the first for Deutsche Boerse's new Chief Executive Carsten Kengeter, who has said he would not rule out either bolt-on or large acquisitions as the exchange operator reviews its business targets and prospects.

The London Stock Exchange last year bought U.S. indices group Frank Russell for $2.7 billion, in a move aimed at putting it into third position in ETFs behind global market leaders S&P Dow Jones and MSCI (NYSE: MSCI - news) .

The German exchange operator also looked at the index business that Barclays Plc (LSE: BARC.L - news) put up for auction but decided not to pursue it, people familiar with the situation said.

($1 = 0.9390 Swiss francs) (Reporting by Jonathan Gould and Andreas Kroener; Editing by Georgina Prodhan)