Nasdaq increases LSE stake
Nasdaq increases LSE stake
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Wednesday, 03, May 2006 09:28
US exchange Nasdaq has increased its stake in the London Stock Exchange (LSE) to 18.7 per cent.
Nasdaq announced it had purchased £119.2 million worth of shares early this afternoon, consolidating its status as the LSE's largest shareholder.
It bought the 9.79 million shares from an undisclosed seller for 1,218p each, a higher price than the 1,175p per share deal paid to complete its initial 14.99 per cent stake in the LSE last month.
A spokeswoman told the Reuters news agency that "our increased stake strengthens Nasdaq's position as the largest shareholder of the LSE", but refused to comment on future plans to acquire further shares.
After its £2.4 billion takeover bid in March failed because the cash bid of 950p per share was too low, Nasdaq appears to be approaching its acquisition goals through more incremental means.
With the New York Stock Exchange (NYSE) admitting it is considering a "strategic" takeover of a European exchange and Deutsche Boerse AG in talks with Euronext, observers have suggested that Nasdaq may feel it is being left behind by not continuing to make overtures to the LSE.
After this afternoon's announcement shares in both exchanges rose, with LSE's stock value up by two per cent and Nasdaq's rising by 30 cents.