Nasdaq drops offer for London Stock Exchange
Nasdaq Stock Market Inc. (Nasdaq:NDAQ) dropped its 2.4 billion pound ($4.18 billion) proposed offer for the London Stock Exchange (LSE.L) on Thursday, becoming the fourth suitor in a year to abandon pursuit of Europe's biggest stock market.
But the second-biggest U.S. stock exchange operator left the door open to a tie-up in the future, saying it might make an offer under certain circumstances, such as if the London Stock Exchange (LSE) agreed to a deal, or a rival bidder emerged.
LSE shares fell 6.8 percent to 1,023 pence in London, valuing the exchange at around 2.6 billion pounds ($4.50 billion). But they remained well above Nasdaq's cash offer proposal of 950p as industry observers continued to believe the London exchange may eventually succumb to a bid, or take a more active role in the industry's consolidation.
LSE shares have soared to as high as 1,219-1/2p since Nasdaq's approach was unveiled on hopes Nasdaq might improve its proposal, or that a rival suitor, such as the NYSE Group Inc.(NYSE:NYX), might enter the fray.
"(The LSE) have fought off bidder after bidder after bidder and I would think that, if London is going to sell, it has to be at a very sweet price and Nasdaq certainly wasn't willing to pay it," said Richard Herr, an analyst at Keefe, Bruyette & Woods in New York.
Nasdaq's shares dropped 3.01 percent at $40.59 in early afternoon trading in New York, while the NYSE also fell, down 2.13 percent at $78.30.
Industry observers thought the NYSE would be in no rush to make any bid for the LSE, as it is tied up with a secondary share offering, integrating its recent acquisition of trading platform Archipelago and introducing its "hybrid" market, which will bring more automation onto the floor.
Herr thinks that, after these events are worked through in about 6 months to 12 months time, the NYSE will be more likely to make acquisitions.
The NYSE declined to comment on Nasdaq's announcement.
But the second-biggest U.S. stock exchange operator left the door open to a tie-up in the future, saying it might make an offer under certain circumstances, such as if the London Stock Exchange (LSE) agreed to a deal, or a rival bidder emerged.
LSE shares fell 6.8 percent to 1,023 pence in London, valuing the exchange at around 2.6 billion pounds ($4.50 billion). But they remained well above Nasdaq's cash offer proposal of 950p as industry observers continued to believe the London exchange may eventually succumb to a bid, or take a more active role in the industry's consolidation.
LSE shares have soared to as high as 1,219-1/2p since Nasdaq's approach was unveiled on hopes Nasdaq might improve its proposal, or that a rival suitor, such as the NYSE Group Inc.(NYSE:NYX), might enter the fray.
"(The LSE) have fought off bidder after bidder after bidder and I would think that, if London is going to sell, it has to be at a very sweet price and Nasdaq certainly wasn't willing to pay it," said Richard Herr, an analyst at Keefe, Bruyette & Woods in New York.
Nasdaq's shares dropped 3.01 percent at $40.59 in early afternoon trading in New York, while the NYSE also fell, down 2.13 percent at $78.30.
Industry observers thought the NYSE would be in no rush to make any bid for the LSE, as it is tied up with a secondary share offering, integrating its recent acquisition of trading platform Archipelago and introducing its "hybrid" market, which will bring more automation onto the floor.
Herr thinks that, after these events are worked through in about 6 months to 12 months time, the NYSE will be more likely to make acquisitions.
The NYSE declined to comment on Nasdaq's announcement.
posted by qwert at 10:32 AM
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