LONDON, Feb 10: The US stock exchange operator Nasdaq failed on Saturday to win control of the London Stock Exchange after LSE shareholders decided overwhelmingly against backing a hostile takeover worth 2.9 billion pounds ($5.5bn).
“We are naturally disappointed at this outcome as we remain of the view that the Final Offers represented a full and fair price for LSE shareholders,” the Nasdaq’s chief executive Bob Greifeld said in a statement.
Welcoming the rejection, the LSE board said Europe’s biggest stock exchange “looks forward to fulfilling its vision to be the world’s capital market, without the distraction of ill-considered approaches which fail to understand the value of the business”.
A deadline for shareholders of the London exchange to accept the offer expired at 1:00pm (1300 GMT) on Saturday, following the Nasdaq’s battle to acquire the LSE lasting almost one year.
LSE chief executive Clara Furse had repeatedly described the offer as too low and had refused to meet Greifeld to discuss the bid.
The US technology-weighted exchange, which had built up a 28.75pc stake in the LSE, offered 1,243 pence per share for the remaining 71.25 per cent.
The Nasdaq said on Saturday that it had received support from shareholders controlling just 0.41 per cent of the LSE, which lists heavyweights including oil group BP, mobile phone company Vodafone and British Airways.
That lifted the Nasdaq’s stake to 29.16 per cent, but way below the 50 per cent it needs to control the London exchange.
The Nasdaq’s bid meanwhile came as the rival New York Stock Exchange is scheduled to merge with the pan-European market operator Euronext as big exchanges vie to provide wider offerings and lower fees to investors.
Greifeld said that the disappointment of losing out to the LSE was “tempered by the knowledge that we remained true to our value case”.
He added: “We have a highly disciplined approach to acquisitions and will only consummate transactions to the extent that they deliver clear and visible benefits for Nasdaq shareholders, and enable us to allocate benefits to market participants.”
The Nasdaq had insisted ahead of Saturday’s deadline that it would not raise its offer, which was below the LSE’s current share price of 1,282 pence.
What the Nasdaq does now remains uncertain. It may seek to sell its stake at a profit, or hold on to it until it is allowed to table a renewed bid in a year.
The Nasdaq has meanwhile warned that it could join forces with the consortium of seven leading investment banks which plan to set up their own platform for trading European equities, potentially depriving the LSE of a large proportion of its business.—AFP