UPDATE 3-ICAP profit beats forecasts, LCH talks continue

* 2008/09 pretax profit of 346 mln stg beats consensus

* Lifts full-year dividend by 9 pct

* Discussions continue on possible LCH.Clearnet bid

* Shares up 8.2 percent

(Adds co spokesman, analyst comments; share price)

By Victoria Howley

LONDON, May 19 (Reuters) - Top interdealer broker ICAP (IAP.L) reported a forecast-beating 5 percent rise in full-year pretax profit, helped by market volatility in the economic crisis, and said discussions to buy clearer LCH.Clearnet were continuing.

Interdealer brokers match up buyers and sellers across fixed income, foreign exchange, equities and commodities markets, and have been more resilient than other financial firms during the financial crisis as they benefit from lively markets.

ICAP has also benefited from its leading market position, rising business on higher margin electronic trading platforms, and increased post-trade services revenue, analysts said.

"ICAP's size means it can ride out the ups and downs in the various markets in which it operates," an ICAP spokesman said on Tuesday.

By 1140 GMT the shares were up 8.2 percent to 432 pence, the top performing stock on the UK FTSE 100. .FTSE

The company reported on Tuesday that its pretax profit for the year ended March 31 was 346 million pounds ($531 million), up from 330 million pounds a year earlier and just above a Reuters Estimates average of 343.7 million based on 10 forecasts. ICAP said its revenue rose 23 percent to 1.6 billion pounds.

It increased its full-year dividend by 9 percent to 17.05 pence per share -- at a time when many other companies are scrapping or cutting their payouts to preserve cash.

"The company has delivered resilient results, with decent profit numbers and excellent cash generation," said Phil Carroll, an analyst at stockbrokers Shore Capital.

Chief Executive Michael Spencer said on a conference call with reporters that talks with LCH.Clearnet on a possible bid offer for the clearer were continuing, but declined to give details.

"Constructive discussions are continuing," Spencer said.

ICAP has teamed up with 11 banks to bid 11 euros a share, or 830 million euros ($1.13 billion), for LCH.Clearnet. The consortium's bid came after the U.S.-based Depository Trust & Clearing Corp (DTCC) scrapped its $979 million merger plan for the clearer.

LCH.Clearnet has been working on its own plan to buy out its 123 shareholders and said last week it wanted to synthesise its own restructuring plan with the consortium's offer.

ICAP and the banks want to gain control of LCH.Clearnet because it is the leading clearer of some over-the-counter derivatives, analysts have said.

ICAP also said it expected to benefit from the U.S. plan to reform the over-the-counter (OTC) derivatives trade. U.S. Treasury Secretary Timothy Geithner wants to push all standardised OTC trades onto a regulated electronic platform such as a an exchange.

"We fully expect to have competition in electronic trade execution of OTC derivatives; but given our previous investment in installing these technologies we are in a strong position to be successful," the company said. ($1 = 0.6516 pound) ($1 = 0.7378 euro) (victoria.howley@thomsonreuters.com; +44 (0)207 542 2415; Reuters Messaging: victoria.howley.reuters.com@reuters.net))