PARIS (AFX) - Lawyers and regulators are working on adding a clause to the merger agreement between Euronext NV and NYSE Group Inc which would break up the deal if any attempt was made to apply the Sarbanes-Oxley US corporate reporting rules to companies listed on the combined group's European exchanges, L'Agefi financial daily reported, citing an unidentified financier.

The proposed clause is aimed at overcoming fears amongst companies listed on Euronext and traders on its markets that US authorities might try to apply the Sarbanes-Oxley rules to the European arm of the merged operation, the financial daily said.

It would prevent the issue from being 'too penalising' for Euronext, a user of the market was cited as saying.

'In effect, the NYSE will adopt Euronext's information systems and international issuers from developing countries - China, India, Russia, will be quoted exclusively in Europe,' the source added.

Meanwhile, an solution enabling Euronext to merge with Deutsche Boerse AG seems extremely complicated to implement, the newspaper said.

At 11.49 am, Euronext shares were up 0.72 pct at 70.00 eur.

equitynext@afxnews.com

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