Wednesday, 23 July 2014
Last updated 14 hours ago
Dec 12 2006 | 9:58am ET
The Nasdaq Stock Market launched a hostile takeover of the London Stock Exchange this morning in a move that may burn hedge funds that have recently poured money into LSE shares.
With the $5.3 billion bid, Nasdaq is offering the same price per share it announced in January, and that the LSE rejected as too low. The New York-based Nasdaq says it will not raise its offer unless it is outbid or LSE allows a friendly approach.
Nasdaq has also ditched its plan for a full takeover of the LSE, opting instead for easier-to-achieve effective control. Nasdaq said its bid will become unconditional if it receives acceptances from owners of just over half of the LSE’s shareholders, a road smoothed by the fact that Nasdaq already owns almost 30% of the LSE. Previously, the Nasdaq sought the approval of 90% of LSE shareholders, as required under British law, to force out the remaining investors and take a company private.
In other words, Nasdaq may not need to win over—financially or otherwise—the hedge funds that own an estimated one-third of LSE shares to win control. Hedge funds investing in the LSE were expected to demand a better price than that Nasdaq is offering.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…