LSE reports revenues rise for third quarter

10 January 2007

The London Stock Exchange has announced that its revenues rose by 11 per cent in the third quarter of the financial year.

According to a statement by the LSE, revenues increased over the three months to December 31st to £89.9 million, while pre-tax profit rose by 12 per cent to £44.2 million.

The stock exchange has repeated that it has no intention of accepting a £2.7 billion offer from US exchange Nasdaq, which it claims undervalues the company. Nasdaq has insisted that it will not increase its offer and claims that the LSE's price has been inflated.

According to the LSE, its "excellent" third quarter results support the decision to reject the Nasdaq bid, as the London stock market continues to register strong growth.

Clara Furse, LSE chief executive, said: "This excellent performance supports the board's rejection of Nasdaq's offer, which significantly undervalues the business and the exchange's unique strategic position."

Recent figures showed that the UK witnessed the largest proportion of initial public offerings (IPOs) in the European Union last year and was fifth in the world in terms of stock floats, behind China and Russia.

London's exchanges are increasingly attracting overseas companies and the city is now ahead of New York in terms of new IPOs.

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