Nasdaq Abandons LSE Bid; NYSE Could Pick It Up
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Nasdaq’s decision to drop its bid for the London Stock Exchange took some of the steam out of the talk about crossborder exchange mergers.
Nasdaq’s move comes after the LSE earlier this month rejected a Nasdaq proposal to buy the LSE, which has attracted several suitors over the years but hasn’t committed to any. Now, exchange experts and market participants are wondering if Nasdaq’s retreat will give the NYSE Group, Nasdaq’s big rival, an opening to make its own proposal for the LSE.
A NYSE spokesman declined to comment, but its chief executive, John Thain, has made no secret of his ambition for the Big Board to play a leading role in the consolidation of exchanges.
In announcing its move yesterday morning, Nasdaq said it “no longer intends to make an offer for the LSE,” although it reserved the right to make one later.The announcement didn’t say exactly why Nasdaq was withdrawing.
An analyst at Sandler O’Neill & Partners, Richard Repetto, said Nasdaq wasn’t allowed to conduct due diligence on the LSE and that without that, “Nasdaq was unwilling to increase its bid.” Nasdaq’s cash proposal had been valued at about $4.2 billion.
