The London Stock Exchange (LSE) has again rejected Nasdaq's bid for the business by arguing it substantially undervalues the company.
Nasdaq announced this morning a bid to acquire the LSE for £12.43 a share, valuing the Exchange at £2.7bn.
But the LSE says such an offer represents only a 2% premium to the market price at the close of business on 17 November 2006 and “substantially undervalues the company and fails to reflect its unique strategic position and the powerful earnings and operational momentum of the business”.
The LSE posted record interim results for the six months ended 30 September 2006 with operating profit up 60% and adjusted earnings per share up 54% on the comparable period to September 2005.
Chris Gibson-Smith, chairman of the LSE, says: “Given the Board’s unanimous view of the final offer from Nasdaq, I have rejected Nasdaq’s request for a meeting.”
Clara Furse, chief executive of the LSE who has already seen off several takeover attempts, adds: “We believe Nasdaq’s final offer fails to recognise the outstanding growth record and prospects of our group on a standalone basis let alone the Exchange’s unique global position.”
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