Nasdaq launches hostile takeover bid
The London Stock Exchange has rejected another offer from Nasdaq, so now the American exchange is pressing ahead with a hostile takeover bid, appealing directly to LSE shareholders. Stephen Beard reports.
The NASDAQ screen in New York City's Times Square (Stephen Chernin, Getty Images)
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MARK AUSTIN THOMAS: Nasdaq is pressing ahead with its hostile takeover bid for the London Stock Exchange. The American company is appealing directly to exchange's shareholders. From London, Stephen Beard reports.
STEPHEN BEARD: Nasdaq is not taking no for an answer. Turned down twice by the board of the London Stock Exchange, Nasdaq's now mailing its offer to shareholders.
They will be given until January the 11th to accept the $5.3 billion bid. This is Nasdaq's final throw says Justin Urquart-Stewart of Seven Investment.
JUSTIN URQUART-STEWART: It is a desperate move because it's the final one you can make to the ultimate owners. If they ignore it or if they just turn it down, then there is not a lot you can actually do after that except pack your bags and go home.Nasdaq, which already owns more than 28 percent of the London Exchange, clearly believes it is in with a chance.
Rival suitors, including the NYSE, all seem to have lost interest. But the market expects another, higher bid. Shares in the London Stock Exchange are standing 6 percent above Nasdaq's offer.
In London, this is Stephen Beard for Marketplace.
