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| Nasdaq makes £2.7bn offer for LSE | Nasdaq makes £2.7bn offer for LSE |
| (about 1 hour later) | |
| A takeover offer worth £2.7bn ($5.1bn) has been tabled for the London Stock Exchange (LSE) by the US Nasdaq market. | A takeover offer worth £2.7bn ($5.1bn) has been tabled for the London Stock Exchange (LSE) by the US Nasdaq market. |
| Nasdaq also said it had paid £87.8m to buy 7 million LSE shares, raising its stake in the group to 28.75%. | Nasdaq also said it had paid £87.8m to buy 7 million LSE shares, raising its stake in the group to 28.75%. |
| Shares in the London market have surged more that 124% over the past year amid ongoing speculation that it will be subject to a takeover offer. | Shares in the London market have surged more that 124% over the past year amid ongoing speculation that it will be subject to a takeover offer. |
| Nasdaq said it planned a dual listing in London and New York if its offer of £12.43 a share is successful. | Nasdaq said it planned a dual listing in London and New York if its offer of £12.43 a share is successful. |
| 'Final offer' | 'Final offer' |
| "We are excited about the prospect of combining two strong businesses to form the leading global, cross-border equity market platform giving issuers the ability to dual-list simultaneously in London and New York," said Nasdaq president and chief executive Robert Greifeld. | "We are excited about the prospect of combining two strong businesses to form the leading global, cross-border equity market platform giving issuers the ability to dual-list simultaneously in London and New York," said Nasdaq president and chief executive Robert Greifeld. |
| "The combined entity will be well positioned to lead further consolidation and compete effectively for the benefit of all market users." | "The combined entity will be well positioned to lead further consolidation and compete effectively for the benefit of all market users." |
| LSE BID TIMELINE December 2004 - Deutsche Boerse tables £1.35bn offerDecember 2004 - Euronext makes merger approachMarch 2005 - Deutsche Boerse drops takeover plansDecember 2005 - Macquarie tables £1.5bn bidFebruary 2006 - Macquarie ditches offerMarch 2006 - Nasdaq tables £2.4bn bidMarch 2006 - Nasdaq withdraws bid, Deutsche Boerse drops plans for LSE offerApril 2006 - LSE denies reports of an approach from New York Stock ExchangeMay 2006 - Nasdaq raises LSE stake to 25.1%September 2006 - Brokerage Icap calls off merger talksNovember 2006 - Nasdaq tables "final offer" of £2.7bn, ups stake to 28.75% href="/1/hi/business/6164756.stm" class="">Q&A: LSE takeover | |
| Nasdaq said it would not be revising its "final offer" unless another company decided to make a bid for the London market. | Nasdaq said it would not be revising its "final offer" unless another company decided to make a bid for the London market. |
| However, BBC Business Editor Robert Peston said the LSE would probably reject the offer. | However, BBC Business Editor Robert Peston said the LSE would probably reject the offer. |
| "The LSE is bound to reject this offer, it will say the business is growing fast and that Nasdaq is being opportunistic," Mr Peston said. | "The LSE is bound to reject this offer, it will say the business is growing fast and that Nasdaq is being opportunistic," Mr Peston said. |
| He added the London exchange could have a hard time seeing off the approach as the Nasdaq now holds a significant stake in the company while there was "almost no basis for the UK authorities to block this deal". | He added the London exchange could have a hard time seeing off the approach as the Nasdaq now holds a significant stake in the company while there was "almost no basis for the UK authorities to block this deal". |
| He added that the Nasdaq had also swooped now to take advantage of a recent fall in the LSE's share price which came in the wake of news that seven investment banks were creating a rival to the LSE. | He added that the Nasdaq had also swooped now to take advantage of a recent fall in the LSE's share price which came in the wake of news that seven investment banks were creating a rival to the LSE. |
| The bid is Nasdaq's second attempt at taking over the firm. | The bid is Nasdaq's second attempt at taking over the firm. |
| In March, it dropped a proposed £2.43bn ($4.2bn) bid for the exchange after the LSE rejected its advance. | In March, it dropped a proposed £2.43bn ($4.2bn) bid for the exchange after the LSE rejected its advance. |
| The US firm is the latest in a long line of foreign suitors to approach the London market. | The US firm is the latest in a long line of foreign suitors to approach the London market. |
| German market Deutsche Boerse, Australian investment bank Macquarie and the pan-European exchange Euronext have all abandoned offers for LSE since December 2004. | German market Deutsche Boerse, Australian investment bank Macquarie and the pan-European exchange Euronext have all abandoned offers for LSE since December 2004. |
| Regulatory worries | Regulatory worries |
| The approaches have prompted the UK watchdog to voice concern about a foreign takeover as it could lead to regulatory changes. | The approaches have prompted the UK watchdog to voice concern about a foreign takeover as it could lead to regulatory changes. |
| Nasdaq attempted to ease these concerns with its offer saying that the UK exchange would continue to be regulated solely by the UK's Financial Services Authority. | Nasdaq attempted to ease these concerns with its offer saying that the UK exchange would continue to be regulated solely by the UK's Financial Services Authority. |
| Meanwhile, the LSE has resisted approaches saying that it can continue to grow alone. | Meanwhile, the LSE has resisted approaches saying that it can continue to grow alone. |
| Earlier this year, LSE chief executive Clara Furse said the company would not do a deal for the sake of doing a deal. | Earlier this year, LSE chief executive Clara Furse said the company would not do a deal for the sake of doing a deal. |
| But analysts and market observers have speculated that the Nasdaq is in a strong position and stock exchanges will need to merge if they want to keep on growing and offer a wide-range of global financial services. | But analysts and market observers have speculated that the Nasdaq is in a strong position and stock exchanges will need to merge if they want to keep on growing and offer a wide-range of global financial services. |
| Last month, City leaders warned that the LSE risked losing its dominant market position in the face of growing global competition. | Last month, City leaders warned that the LSE risked losing its dominant market position in the face of growing global competition. |