Monday, March 13, 2006
LSE may favour deal with NYSE to defend against NASDAQ overtures -reports
mergermarket.com: "LSE may favour deal with NYSE to defend against NASDAQ overtures -reports
StoryLSE�s next step to defend against Nasdaq�s offer might involve a rival bid from the New York Stock Exchange, a Sunday Times report said. The report said that the London Stock Exchange (LSE) is likely to rebuff the overtures of Nasdaq in favour of a potential deal with the New York Stock Exchange (NYSE), the larger of the two New York-based stock exchanges. The item cited sources close to the LSE, who said this weekend that Nasdaq�s approach would prompt LSE to begin bid discussions with NYSE.
NYSE chief executive John Thain is believed to have instructed NYSE�s advisers, Citigroup, to put together a bid for LSE, according to the report. LSE rejected Nasdaq�s GBP 2.4bn (EUR 3.4bn) takeover bid on Friday (10 March). Analysts cited by a report in The Observer think LSE chief executive Clara Furse wants to prompt a bid battle by encouraging a �White knight� counter bid from NYSE. A report in The Business cited Wall Street sources who said that Citigroup is considering options for NYSE, but that the exchange has a dilemma in that it is still working on its recent flotation, and with preparations for a secondary share issue. The source said the idea of a counter-offer has not been dismissed.
It is understood that Nasdaq is prepared to go hostile with its offer if it fails to secure a recommendation from the LSE board, the Observer report said. The Business item cited City sources who said Nasdaq�s all-cash bid would be funded with debt and contributions from investors. Hellman & Friedman and Silver "
StoryLSE�s next step to defend against Nasdaq�s offer might involve a rival bid from the New York Stock Exchange, a Sunday Times report said. The report said that the London Stock Exchange (LSE) is likely to rebuff the overtures of Nasdaq in favour of a potential deal with the New York Stock Exchange (NYSE), the larger of the two New York-based stock exchanges. The item cited sources close to the LSE, who said this weekend that Nasdaq�s approach would prompt LSE to begin bid discussions with NYSE.
NYSE chief executive John Thain is believed to have instructed NYSE�s advisers, Citigroup, to put together a bid for LSE, according to the report. LSE rejected Nasdaq�s GBP 2.4bn (EUR 3.4bn) takeover bid on Friday (10 March). Analysts cited by a report in The Observer think LSE chief executive Clara Furse wants to prompt a bid battle by encouraging a �White knight� counter bid from NYSE. A report in The Business cited Wall Street sources who said that Citigroup is considering options for NYSE, but that the exchange has a dilemma in that it is still working on its recent flotation, and with preparations for a secondary share issue. The source said the idea of a counter-offer has not been dismissed.
It is understood that Nasdaq is prepared to go hostile with its offer if it fails to secure a recommendation from the LSE board, the Observer report said. The Business item cited City sources who said Nasdaq�s all-cash bid would be funded with debt and contributions from investors. Hellman & Friedman and Silver "
