The Nasdaq electronic stock exchange confirmed on Friday it had made a bid for the London Stock Exchange (LSE), calling it an ”attractive offer” for shareholders.
The news came hours after the LSE said it had rejected the unsolicited offer from the United States group as one that ”substantially undervalues” the company.
The Nasdaq said in a statement that its proposal ”represents an attractive offer for shareholders and users” and that it would ”be seeking constructive discussions with the board of LSE with the view to reaching a recommended offer for shareholders”.
The offer submitted on Thursday, worth 950 pence per share, values the biggest equity market in Europe at about £2,42-billion.
The bid was revealed after the close of trading in London on Friday and comes after the LSE last month fended off a hostile approach by Australian investment group Macquarie Bank worth £1,5-billion.
The LSE said the bid by Nasdaq, which trades technology shares, represented only an 8% premium when compared with the LSE’s closing share price on Friday of 880 pence.
But Nasdaq said its bid represents a 72% premium over the closing price on August 12 immediately prior to Macquarie’s announcement of its interest. It also is 64% higher than the cash-offer share price of 580 pence per share offered by Macquarie, according to Nasdaq. — Sapa-AFP