Nasdaq OMX Group Inc is preparing an offer for NYSE Euronext and the bid could come as early as this week, the Wall Street Journal reported on Monday, citing people familiar with the matter.

Under the proposed deal to counter Deutsche Boerse AG's more than $9 billion offer for NYSE, Nasdaq would finance the transaction with up to $5 billion in debt and sell NYSE's Liffe derivatives business to IntercontinentalExchange Inc , the report said.

Earlier on Monday, deal publication DealReporter reported Nasdaq is in advanced talks with lenders about funding a hostile bid. The exchange operator would finance the bid with about $5 billion in debt from banks led by Bank of America Corp and $5 billion in asset sales, DealReporter said.

Shares of NYSE Euronext rose 4.5 percent to $36.55.

A source familiar with the situation told Reuters last month that Nasdaq was exploring options that include teaming up with a partner on a rival bid for NYSE Euronext.

Pressure is mounting on global bourses to seek partnerships to counter the threat from bigger rivals and alternative trading platforms, and to cut costs.

In a span of few weeks, Deutsche Boerse agreed to buy NYSE, the London Stock Exchange Group Plc announced a deal to take over Canadian stock market operator TMX Group , and BATS Global Markets said it will buy peer Chi-X Europe.

(Reporting by Paritosh Bansal, writing by Soyoung Kim; Editing by Bernard Orr)

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