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Last Updated: Tuesday, 9 January 2007, 10:37 GMT
LSE fights bid with rising profit
London Stock Exchange sign
The LSE has now been in play for more than a year
The London Stock Exchange has rushed out its latest profit figures as part of an attempt to ward off a hostile takeover from US market Nasdaq.

In a statement three weeks ahead of schedule, the LSE said that its pre-tax profit for the final three months of 2006 rose 12% to 44.2m ($85.7m).

Revenues were up across all parts of its business, the LSE said.

On Monday, the Nasdaq had said its 2.7bn ($5.2bn) bid remained the best deal for LSE shareholders.

'Unprepared'

In a response to the LSE's statement, the Nasdaq said that the results showed nothing new.

"These results take no account of the impact that growing customer dissatisfaction, the new competitive threats introduced by upcoming regulatory changes, or accelerating consolidation will have on LSE's future financial performance," Nasdaq said.

But the LSE said its "excellent" performance - which included a 53% rise in profits before exceptional items for the nine months to the end of December - "supports the board's rejection of Nasdaq's offer".

The bid "significantly undervalues the business and the exchange's unique strategic position", it said.

LSE shares have more than trebled over the past two years as it has attracted - and rejected - a procession of suitors including pan-European market Euronext and Germany's Deutsche Boerse.

Nasdaq already owns 28.75% of the LSE, which is Europe's biggest stock market.


SEE ALSO
Nasdaq still confident of LSE win
08 Jan 07 |  Business
LSE dubs Nasdaq bid 'inadequate'
19 Dec 06 |  Business
Nasdaq unveils hostile LSE offer
12 Dec 06 |  Business
LSE rejects 2.7bn Nasdaq offer
20 Nov 06 |  Business
In-demand LSE sees profits surge
08 Nov 06 |  Business
Icap emerges as latest LSE suitor
25 Sep 06 |  Business

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