Nasdaq Says Q3 Data Won't Change its View on LSE

Posted 08 January 2007 @ 10:31 am EET     Print     Reprint     E-Mail     Comments

LONDON (Reuters) - Nasdaq Stock Market Inc. said on Monday that imminent thirdquarter figures from the London Stock Exchange (LSE.L) would not affect its 2.7 billion pound ($5.2 billion) hostile bid for the British exchange. The Daily Telegraph said the LSE would release third-quarter numbers this week, almost three weeks early, as part of its defense against the cash offer of 1,243 pence a share from the U.S. stock market group.

"The imminent announcement of LSE's 2006 financials, which has been anticipated in press speculation, in no way changes the fact that LSE's value case has been entirely based on current and historical financial performance," Nasdaq said in a statement.

"The key issue is how LSE will react to the substantial future challenges that it will face in 2007 and beyond." LSE shares have more than trebled over the past two years as it has attracted and rejected a procession of suitors. The world's stock exchanges are under pressure to consolidate as customers push for global services and lower fees.

Nasdaq already owns 28.75 percent of the LSE, Europe's biggest stock market. The LSE was not immediately available for comment. Its shares closed at 1,283 pence on Friday, signaling some investors are still hopeful of a higher offer.