Nasdaq set its hostile takeover of the London Stock Exchange (LSE) in motion today when it posted its £2.7 billion offer to shareholders.
The New York bourse gave LSE shareholders until January 11th to accept the 1243p a share offer - which was turned down by the LSE board last month.
Nasdaq, which already owns 28.75 per cent of the LSE after building up its stake gradually this year, decided to go straight to shareholders after the LSE board refused to meet to discuss the offer.
Nasdaq said it will not improve its offer unless a rival bid is tabled or if it is agreed by the LSE board - unlikely given the LSE's refusal to meet Nasdaq.
Treasury minister Ed Balls said yesterday that the British government would not block the takeover of the LSE, or any other UK firm, by foreign investors. The release of the formal offer document today comes two years after the latest round of takeover approaches for the LSE began.
On December 13th, 2004, Deutsche Boerse said it was interested in making an offer of 530p a share, or £1.35 billion, but it was knocked back by the LSE.
Since then the LSE has faced interest from Euronext, the New York Stock Exchange, Australian bank Macquarie and Nasdaq, which had a £2.4 billion offer turned down in March.
Agencies
