Nasdaq buys European rival

The Nasdaq is to have a key foothold in Europe

The US high tech stock exchange, the Nasdaq, is to effectively take control of its European rival, Easdaq.

The deal, which will give the Nasdaq 58% of Easdaq, will give the US share trading market a long coveted foothold in Europe.

Through this transaction, Nasdaq aims at playing a key part in the consolidation of the European stock market sector

Nasdaq

It is subject to approval by Easdaq shareholders, expected in the next few days.

Nasdaq said in a statement the long-anticipated deal was part of its European strategy, and an important link in its global trading platform.

"Through this transaction, Nasdaq aims at playing a key part in the consolidation of the European stock market sector," Nasdaq said.

The new exchange, to be renamed 'Nasdaq Europe', is to form a third global hub for the high-tech Nasdaq, supplementing its own exchanges in New York and Tokyo.

By May or June 2001, the company aims to launch a newly developed European Trading System (ETS), it said.

The ailing pan-European Easdaq, set up in Brussels five years ago, currently has about 60 companies listed on it.

Global alliances

The move comes at a time when global stock markets are shaping a series of alliances and co-operation arrangements.

On Monday, Nasdaq also announced a deal with the London Financial Futures and Options Exchange (LIFFE) in individual stock futures.

And discussions with other potential European partners continue, the Nasdaq said in a statement.

Nasdaq has previously discussed an alliance with the London Stock Exchange (LSE).

That was in the wake of the failure of a link-up between Frankfurt's Deutsche Borse and the LSE, after Swedish predator OM Gruppen entered the fray.

The hostile bid failed and there has also been talk that the Nasdaq and the Deutsche Borse itself are in talks.