Nasdaq facing deadline for LSE bid

12 April 2012

The US stock exchange is facing the deadline to complete its hostile bid for its London rival.

Nasdaq has until 1pm to secure backing from London Stock Exchange (LSE) shareholders - a deadline that has been extended twice already after Nasdaq gained support from less than 1% of investors. It is making a 2.7 billion offer for the LSE.

Nasdaq, which already owns a 28.8% stake in the LSE, is widely expected to fail again to win over the 21% of shareholders it needs to control 50% of the London exchange as the LSE puts up a robust defence.

Nasdaq chief executive Bob Greifeld gave a signal earlier this month that it had already admitted defeat when he pledged to wage a long-term battle for the LSE.

He said Nasdaq could hold on to its stake for up to 18 months, which could scupper tie-ups between the London exchange and other bourses.

Earlier in the takeover tussle Nasdaq had threatened to sell its 29% holding if the bid failed.

Nasdaq has also warned it could join forces with the consortium of banks that are planning a rival platform to the LSE, known as Project Turquoise.

Mr Greifeld has claimed to have met the consortium and was considering leasing the platform its technology.

Nasdaq believes its 1243p a share offer is fair and has said that incoming European regulations, known as Mifid, will open up European exchanges to competition, putting pressure on the LSE's share price.

Shares in the LSE have soared since Nasdaq made its first unsolicited takeover approach last March for the initial sum of £2.4 billion, rocketing from 850p a share to a peak of nearly 1350p earlier this month.

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