Tuesday, October 17, 2006
LSE: Nasdaq not about to bid, it is believed
Nasdaq is not about to launch a bid for the London Stock Exchange, it is believed.
The US exchange is still more likely than not to wait until March, when a year will have elapsed since it paid an effective highest price of GBP 12.43 a share for a stake in the exchange, it is thought. Beyond this point it is free to make an offer below this.
Nasdaq is said not to see any truth in a report claiming it has secured funding for a takeover from its shareholders Silver Lake Partners and Hellman & Friedman. The two private equity firms were unavailable for comment.
Nasdaq would have spoken to its shareholders before embarking on its approach for LSE and moving into its stock, and feels it has their support, it is believed.
Nasdaq has not sought discussions with LSE shareholders, though a number of the UK company's stockholders have made their views known to the US exchange, it is thought.
Nasdaq believes hedge fund shareholders are pressuring LSE CEO Clara Furse to either enter talks with Nasdaq or to find a white knight if that is her plan. LSE declined to comment.
Nasdaq might feel comfortable waiting until next year to watch the pressure on Furse grow, it is thought.
Nasdaq would never re-list itself to London and would almost certainly not move its headquarters there, contrary to a recent report, it is believed.
The US exchange might however set up a secondary listing in London and hold half its board meetings in the UK capital, it is thought.
Nasdaq is not worried about losing potential synergies from an LSE merger if the UK government goes ahead with proposals to ‘ringfence’ LSE from exposure to foreign legislators, it is believed.
The US exchange plans to replace LSE’s IT system with its own, but each exchange would be run from a separate platform, it is understood.
Also, Nasdaq said itself in its 10 March proposal that it planned to ringfence LSE, it was pointed out.
The US exchange is still more likely than not to wait until March, when a year will have elapsed since it paid an effective highest price of GBP 12.43 a share for a stake in the exchange, it is thought. Beyond this point it is free to make an offer below this.
Nasdaq is said not to see any truth in a report claiming it has secured funding for a takeover from its shareholders Silver Lake Partners and Hellman & Friedman. The two private equity firms were unavailable for comment.
Nasdaq would have spoken to its shareholders before embarking on its approach for LSE and moving into its stock, and feels it has their support, it is believed.
Nasdaq has not sought discussions with LSE shareholders, though a number of the UK company's stockholders have made their views known to the US exchange, it is thought.
Nasdaq believes hedge fund shareholders are pressuring LSE CEO Clara Furse to either enter talks with Nasdaq or to find a white knight if that is her plan. LSE declined to comment.
Nasdaq might feel comfortable waiting until next year to watch the pressure on Furse grow, it is thought.
Nasdaq would never re-list itself to London and would almost certainly not move its headquarters there, contrary to a recent report, it is believed.
The US exchange might however set up a secondary listing in London and hold half its board meetings in the UK capital, it is thought.
Nasdaq is not worried about losing potential synergies from an LSE merger if the UK government goes ahead with proposals to ‘ringfence’ LSE from exposure to foreign legislators, it is believed.
The US exchange plans to replace LSE’s IT system with its own, but each exchange would be run from a separate platform, it is understood.
Also, Nasdaq said itself in its 10 March proposal that it planned to ringfence LSE, it was pointed out.
