LONDON, March 10: The London Stock Exchange on Friday said it had received a preliminary cash bid from the Nasdaq Stock Exchange in New York but added that the offer worth 950 pence per share “substantially undervalues” the company. The proposal values the LSE at about 2.42 billion pounds ($4.18bn).

“The board of the London Stock Exchange announces that it has received a pre-conditional proposal from the Nasdaq Stock Market, with a view to Nasdaq making an offer to acquire the company for 950p per share in cash,” a statement said.

“The Board of London Stock Exchange firmly believes that the proposal, which represents only an eight per cent premium to the current market price, substantially undervalues the company, its unique position and the very significant synergies that would be achievable from the combination of London Stock Exchange with any major exchange group,” the statement added.—AFP