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Last Updated: Tuesday, 23 January 2007, 10:22 GMT
Nasdaq attacks LSE's bid stance
London Stock Exchange sign
The LSE has called Nasdaq's offer "wholly inadequate"
The Nasdaq has reiterated that its takeover bid for the London Stock Exchange (LSE) is fair and called the UK firm's growth forecasts ambitious.

In its latest attempt to woo investors, Nasdaq also criticised the LSE for not considering a friendly takeover.

Nasdaq has put forward a hostile 1,243-pence-per-share offer for the LSE, valuing it at 2.7bn ($5.3bn).

The London exchange has called Nasdaq's offer "wholly inadequate" and has been urging shareholders not to sell.

Last week, the LSE issued an upbeat trading forecast and said it would return an extra 250m to shareholders.

'Full and fair price'

We are surprised that the LSE board has to this day completely failed to engage with Nasdaq with respect to a recommended transaction
Nasdaq statement

The LSE forecast that the number of average daily trades on its SETS electronic trading system would rise by at least 180% to about 480,000 in 2008. However, the Nasdaq said this figure was ambitious, and added that the LSE's plan to lower tariffs meant profit would be hit, despite higher turnover.

"We believe yield pressure will mean that even if LSE achieves its ambitious volume forecast, the reduction in yield is likely to depress the rate of LSE's revenue and profit growth," Nasdaq said.

It also repeated that it felt its offer represented a "full and fair price".

"We believe that the interests of LSE and the London market will be well served in a combination with Nasdaq," it said.

"Given this, we are surprised that the LSE board has to this day completely failed to engage with Nasdaq with respect to a recommended transaction."

Nasdaq said the only meeting it has had with the LSE was in the role of shareholder, rather than as a potential bidder, in May 2006.

The US exchange already owns about 29% of the LSE. The deadline for shareholders to agree to support the bid is 26 January.

LSE strengthens takeover defence
18 Jan 07 |  Business
Nasdaq struggles for LSE shares
11 Jan 07 |  Business
LSE fights bid with rising profit
09 Jan 07 |  Business
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

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