LONDON (AFX) - Nasdaq has failed in its bid to buy London Stock Exchange PLC, after the US exchange said in a statement today that only 0.41 per cent of LSEs total shareholding had accepted its 1,243 pence per share offer, which valued the UK exchange at 2.9 bln stg.
Nasdaq remains the LSEs largest shareholder, and indicated it will retain the 28.75 pct stake it held before launching its offer.
'We are naturally disappointed at this outcome as we remain of the view that the Final Offers represented a full and fair price for LSE shareholders, Nasdaqs president and chief executive Robert Greifeld said.
Acknowledging the lapse of its offer, Nasdaq continued to throw doubt on the LSE's defence, especially its financial projections.
'In our opinion, the London equity trading market is facing unprecedented change with the introduction of MiFID,' Nasdaq said, referring to the EU's MiFID directive, which aims to create a single market in financial services.
'Nasdaqs experience of growing volume in a competitive environment suggests that yield pressure could be intense,' it added.
'The accuracy or inaccuracy of LSEs projections can only be proven through the passage of time and Nasdaq, as LSEs largest shareholder, will monitor with interest how the business performs going forward.'
Greifeld said that Nasdaq will continue to pursue other opportunities to build on its existing position as the worlds largest electronic equities exchange.'
LSEs shares closed yesterday at 1,282 pence. newsdesk@afxnews.com jm COPYRIGHT Copyright AFX News Limited 2006. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited