Nasdaq Undeterred, Continues To Pursue LSE

by Philip Morton, Investors Offshore.com, London

23 November 2006

Despite the decision by the Board of the London Stock Exchange earlier this week to reject its proposed takeover bid, the Nasdaq Stock Market has revealed that it will proceed with making its final offer of GBP12.43 to LSE shareholders.

According to the LSE board, the bid "substantially undervalued" the company.

The London exchange explained that its US counterpart's offer of GBP12.43 per share in cash represented a premium of just 2% over the market price at close of business on November 17, and therefore failed to reflect the business's "unique strategic position, powerful earnings and operational momentum".

“Given the Board’s unanimous view of the final offer from Nasdaq, I have rejected Nasdaq’s request for a meeting," Chris Gibson-Smith, LSE Chairman announced on Monday.

“We believe Nasdaq’s final offer fails to recognise the outstanding growth record and prospects of our group on a standalone basis, let alone the Exchange’s unique global position," added Clara Furse, the LSE's Chief Executive.

In its respose to this decision, NASDAQ announced that it "is disappointed that LSE has rejected NASDAQ's request for a meeting to discuss the Final Offers".

It continued:

"As stated in the Offer Announcement, NASDAQ appreciates LSE's strong standalone growth prospects as shown in LSE's recent interim results. NASDAQ believes that this potential is fully reflected in the Final Offers at 1,243 pence."

"NASDAQ will proceed with its Final Offers to LSE Shareholders at 1,243 pence per LSE Ordinary Share."

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