The Nasdaq electronic stock exchange said today that it has dropped its bid for the London Stock Exchange that it made earlier this month. In its statement, Nasdaq said it 'no longer intends to make an offer for the LSE'.
However, the exchange said it reserved the right 'under certain circumstances, to announce an offer or possible offer or make and participate in an offer or possible offer for the LSE and/or take any other action which would otherwise be restricted under The City Code on Takeovers and Mergers.'
On March 10, Nasdaq confirmed its bid for LSE, which at the time was valued at £4.18 billion sterling, only hours after the LSE said it had rebuffed the unsolicited offer as one that 'substantially undervalues' the company.
Nasdaq's offer came amid a consolidation in global stock markets including the New York Stock Exchange merger with the Archipelago electronic platform and Nasdaq's acquisition of rival Instinet.
The battle to control the London exchange began in December 2004 when Deutsche Boerse, operator of the Frankfurt stock exchange, made an informal offer of 530 pence per share, valuing the LSE at £1.3 billion. The offer was later rejected as too low.
In February, the LSE fended off a hostile approach by Australian investment group Macquarie Bank worth £1.5 billion.
