LSE rebuffs Nasdaq bid

The London Stock Exchange has dismissed a takeover bid from the New York-based Nasdaq, saying it "substantially undervalues" the exchange.

Nasdaq announced its 950p per share bid on Friday, but the exchange's board replied that it "substantially undervalues the company, its unique position and the very significant synergies that would be achievable from the combination of the London Stock Exchange with any major exchange group".

The next shareholders' meeting is on April 19, when the board will ask them to approve a 200p capital return - proposed last month as a counter to another takeover bid from the Australian bank Macquarie.

Press reports over the weekend suggested that the New York Stock Exchange might also make a bid for the LSE.

The news of the bid, and the subsequent rumours of a bidding war, sent LSE shares rising from their Friday close of 880p - at which price it would have presented an 8% premium - to a record 1,119p this morning.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here