Nasdaq launches hostile LSE bid

13 December 2006

Nasdaq has launched a hostile bid for the London Stock Exchange (LSE) following the rejection of an earlier bid by LSE's board in November.

The US exchange has offered £12.43 per share to LSE's stockholders - the same price of its "final" offer last month.

LSE's board has again rejected the advance, urging its shareholders to also ignore the offer, saying that it did not accurately value the exchange.

"The board unanimously rejects Nasdaq's offer as it substantially undervalues the Exchange and fails to reflect its unique strategic position and the powerful earnings and operational momentum of the business," the LSE said in a statement on its website, adding that shareholders were "strongly recommended" to take no action in respect of the offer.

Nasdaq has set a January deadline for shareholders to consider the bid, which values LSE at £2.7 billion.

It already owns 28.75 per cent of the exchange - Europe's biggest equity market - having increased its stake following the rejection of the November offer.

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