LONDON, (AP) – The London Stock Exchange on Monday spurned a fresh takeover bid from Nasdaq Stock Market Inc., saying it “substantially undervalued” the London Market.
Nasdaq, taking its second try to take over the LSE, offered to buy the more than 70 percent of the shares it doesn’t already own in a deal which values the entire London bourse at $5.1 billion.
“”We believe Nasdaq’s final offer fails to recognize the outstanding growth record and prospects of our group on a standalone basis let alone the exchange’s unique global position,” said Clara Furse, chief executive of the London Stock Exchange.
New York-based Nasdaq, which accumulated 25.1 percent of LSE shares during a takeover bid earlier this year, on Monday offered 12.43 pounds ($23.56) per share in cash for the rest. It then announced further purchases which raised its stake to 28.75 percent.
The offer represents a premium of 54 percent on LSE’s closing share price March 10, the day before the LSE said it had received an approach, and was the minimum bid it could make under British takeover rules.
LSE shares traded above the offered price at 12.90 pounds ($24.44) at midday Monday.