Friday, 19 December 2014
Last updated 8 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.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.