NASDAQ STILL IN THE HUNT, BUT LONDON'S NOT TALKING
The NASDAQ extended its $5.3 billion hostile bid for the London Stock Exchange yesterday, but the British market is refusing to negotiate.
The tech-heavy U.S. exchange has tried unsuccessfully for 10 months to open talks about a trans-Atlantic stock exchange.
A deadline set for today was extended until Feb. 10, but Nasdaq officials ruled out raising the offer and continued to appeal straight to the London Exchange's shareholders.
"Over the next few weeks, as investors realize that a higher bid isn't coming and there's likely not another bidder entering the fray, the Nasdaq offer will look considerably more attractive," said Keefe, Bruyette & Woods analyst Richard Herr.
Nasdaq said its bid has lured shareholders controlling 0.6% of the London exchange's shares. British exchange officials said that relatively low number reflects the view that Nasdaq's bid "substantially" undervalues the 308-year-old marketplace.
London Stock Exchange CEO Clara Furse has refused to negotiate with Nasdaq since it first made a bid in March. Nasdaq has bought a 28.75% stake in the LSE.
In urging investors to reject Nasdaq's bid, the London exchange has pledged to raise its dividend by at least 50%.
The exchange also plans to cut trading fees on its markets to head off competition from investment banks that are planning their own electronic trading system.
+ News Source: NYDAILY NEWS
+ Link: http://www.nydailynews.com/business/story/492297p-414693c.html
+ Last Updated: 2007-01-27 14:05:18
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