January 09, 2007	Tuesday	Zilhaj 18, 1427

LONDON, Jan 8: The US exchange, Nasdaq continuing its months-long battle for the London Stock Exchange has warned LSE shareholders not to be misled by claims from its management that it has a strong future as an independent bourse.

Nasdaq believes the LSE will be forced to cut the prices it charges for trading amid increased competition from the likes of Project Turquoise, the pan-European trading platform planned by seven investment banks. It also claimed the British bourse has ignored growing customer dissatisfaction with their service.

Nasdaq said in its statement issued to media: “LSE shareholders should not be misled by a simple emphasis on volume growth without price cuts [and] a defensive return of capital.”

The attack by Nasdaq comes ahead of the expected publication by the LSE this week of its third-quarter trading figures. The London bourse is expected to release the figures this week, three weeks earlier than usual, in an effort to give investors as much financial information as possible.

Nasdaq reiterated that it has no intention of increasing its £12.43-a-share, or £2.7bn, offer and on Thursday has the first chance to show how many LSE investors back its bid. Still, most investors tend to ignore the first closing date as they wait to see the full extent of the company’s defence and whether the bidder will up their offer.

Clare Furse, chief executive of LSE, is ignoring “growing customer dissastisfaction, new competitive threats introduced by upcoming regulatory changes, or accelerating consolidation of the exchange landscape,” Nasdaq said on Monday.

The LSE was accused of basing its case for staying independent on historical figures rather than future projections of performance in what is expected to be a more competitive market. The statement is a response to the LSE’s first defence document last month which urged shareholders to reject Nasdaq’s offer.

Nasdaq said its offer is a 54pc premium to the standalone value of the LSE. Nasdaq will only raise the price if the British bourse recommends the bid or there is a competing offer.