New York-based Nasdaq has taken a 14.99% stake in the London Stock Exchange, giving it a headstart over its rivals in the struggle for the London bourse.Nasdaq bought Threadneedle Asset Management, previously the LSE's largest single shareholder with 13.9% of the stock, and added another 1.1% of stock from other shareholders. The total holding is worth £444.7 million at the current price of 1,175 pence per share, Nasdaq said. The deal is the largest permitted by UK takeover rules, which set a maximum purchase of 15% in a week and 30% in six months without the permission of the target company. This permission is unlikely to be granted. In a statement, the LSE said that it had "extremely strong growth prospects as a standalone business", and added that it did not believe that the current share price was high enough. A planned £510 million payout to shareholders will go ahead. An earlier approach by Nasdaq for a takeover of the exchange was rebuffed last month by the LSE's management, which said that the bid undervalued the business. The move could give Nasdaq a foothold in the consolidating European market. The three main players – LSE, Euronext and Deutsche Börse – are expected to consolidate in some way, but the shape of any tie up remains uncertain. Deutsche Börse also attempted a bid for the LSE, a move that led to a shareholder revolt and the downfall of its chief executive, Werner Seifert. The shareholders involved, led by the hedge funds Atticus Capital and TCI, are believed to prefer a Deutsche/Euronext merger.
More on Exchanges
NYXBT will initially be based off data from Coinbase Exchange.
German exchange group signs joint venture deal with CFFEX and Shanghai Stock Exchange
A mostly positive mix of Q1 results also yield big increases in data revenues for some exchanges.
Volumes jump following revamp of Sydney bourse's clearing incentive scheme
Sign up for Risk.net email alerts
Sponsored video: MarketAxess
Sponsored video: Tradeweb
Multifonds talks to Custody Risk on being nominated for the Post-Trade Technology Vendor of the Year at the Custody Risk Awards 2014
Sponsored webinar: IBM Risk Analytics
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.