Deutsche Boerse and NYSE Euronext are expected to sidestep thorny political issues as they prepare to announce a deal Tuesday to create the world's largest exchange operator.   

The two have hammered out a broad framework for a merger deal that focuses on functions and personalities, with several executives chosen for key posts across Europe and the United States, three people familiar with the plan said.

Another source added that major issues like the exact exchange ratio and the premium to be paid to NYSE Euronext have been sorted out, and a definitive agreement is expected to be announced on Tuesday.   

Among the issues they will leave in the too-hard basket for now are what to call the merged entity, how exactly it will cut costs, and which technologies it will favor, sources said.   

Putting these off may only add to the questions being asked by some politicians on both sides of the Atlantic about whether the deal should be approved. Any delay could also open the door to rival bidders for NYSE Euronext -- one news report on Monday cited CME Group Inc as a potential buyer.

Some issues facing Deutsche Boerse-NYSE Euronext tie-up, which could still derail the plan, would need to be resolved over the coming weeks, said the sources, who requested anonymity because talks continue.   

'The biggest question mark in general is obviously the European political and regulatory landscape coming out of this,' one source said.

The boards of NYSE Euronext and Deutsche Boerse are set to vote Tuesday, two sources said. Deutsche Boerse will also publish quarterly results Tuesday.   

The Frankfurt- and New York-based companies were center stage in the merger frenzy that erupted last week and heated up on Monday as Brazil's BM&FBovespa said it was eyeing its own prospects and as traders buzzed that CME Group could jump into the fray.

Fox Business Network reported that CME Group, currently the world's top derivatives exchange group, may make a hostile bid for NYSE Euronext, citing bankers.   

A spokesman for Chicago-based CME declined to comment. CME officials have been guiding investors away from expectations that the company would do a merger deal.   

BM&FBovespa, the world's fourth-largest financial exchange operator, is closely watching for tie-up opportunities, chief executive Edemir Pinto told Reuters.

Pinto said BM&FBovespa is interested in China and India as markets where it could pursue expansion because of their growth potential and similarities in terms of products. He added that a partnership with CME also has 'room to grow,' but did not elaborate.   

In Australia, market operator ASX said it was in talks with suitor Singapore Exchange about changes to board arrangements as the sides seek to win political and regulatory support for their proposed tie-up. - Reuters