08 January 2007

LSE rushes out results as Nasdaq steps up takeover fight

The London Stock Exchange (LSE) is set to release its third quarter earnings statement three weeks ahead of schedule in an attempt to thwart Nasdaq's £2.7bn hostile takeover bid. But the US stock exchange has insisted it won't raise its £12.43 per share offer and has threatened to establish a London-based competitor to the LSE if its bid fails.

According to a Daily Telegraph report the LSE will release its third quarter figures alongside market statistics for December later this week, instead of at the end of the month, in order to provide shareholders 'with as much financial information as possible'.

The LSE statement is expected to be released before the first close for Nasdaq's £12.43 per share offer on Thursday, when the US exchange will discover how much backing it has from LSE shareholders for its increasingly hostile takeover bid.

Nasdaq formally launched its £2.7bn hostile bid for the LSE in December after its first two approaches were rebuffed by the UK market operator earlier in the year.

In a statement released on Friday Nasdaq reiterated that it's £12.43-a-share offer was final and will only raise the price if the LSE recommends the bid or there is a competing offer.

Nasdaq also said that it could sell its stake and set up competitor to LSE in London - either on its own or in co-operation with another party - if it's bid fails.

Nasdaq has warned LSE shareholdes that a sudden withdrawal of its bid would send LSE shares tumbling.

Nasdaq president and CEO Robert Greifeld says: 'Together with Nasdaq, the LSE will be better positioned to meet new and increasing challenges, including competing initiatives from customers, significant regulatory changes, and the recent wave of consolidation among powerful competitors.'

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