The Nasdaq stock market's bid to buy the London Stock Exchange turned hostile this afternoon after the US group said it would press ahead with its rejected offer worth £2.9 billion sterling. The Nasdaq is locked in a race with the rival New York Stock Exchange to create the world's first intercontinental stock market.
The LSE had earlier today snubbed Nasdaq's renewed takeover bid, worth $4.3 billion or $5.5 billion, describing it as undervaluing the company on the basis of its recent strong half-year results.
'As stated in the offer announcement, Nasdaq appreciates LSE's strong standalone growth prospects as shown in LSE's recent interim results,' the US company said in a terse response.
'Nasdaq believes that this potential is fully reflected in the final offers at 1,243 pence. Nasdaq will proceed with its final offers to LSE shareholders at 1,243 pence per LSE ordinary share,' it added.
Nasdaq, which is the LSE's biggest shareholder, had earlier pitched the improved 'final' bid and also requested a meeting with management - a demand which was also denied by the London exchange.
'We are disappointed by the quick rejection of our proposal and the LSE board's refusal to meet with Nasdaq,' Nasdaq president and CEO Robert Greifeld said in the new statement.
The increased bid represented a 20.8% increase on Nasdaq's previous offer in March, and comes amid rapid consolidation of the global stock trading landscape.
The LSE said earlier today that the new bid 'substantially undervalues the company and fails to reflect its unique strategic position and the powerful earnings and operational momentum of the business'.
The US index, dominated by US technology listings including online search engine Google, also revealed today that it has upped its total LSE holding to 28.75%, from 25.1% previously.
The Nasdaq had tried unsuccessfully in March to take over the London exchange but a £2.4 billion bid was rejected as too low. Under UK takeover rules, it had to wait six months before making another attempt.
Nasdaq's latest bid comes as chief US rival the New York Stock xchange is attempting to merge with pan-European market operator Euronext. And a group of US and European banks are preparing a new stock trading platform to challenge established European stock markets.
Over the past two years, the LSE has fielded unsuccessful takeover attempts from European rivals Euronext and Germany's Deutsche Boerse, as well as Australia's Macquarie Bank and Nasdaq.
LSE shares closed 6% higher in London this evening.
