The board of the London Stock Exchange Group plc has rejected Nasdaq’s so-called final offer to acquire the company for £1.243 per share in cash.
The LSE board says that it firmly believes that the proposal, “substantially undervalues the company and fails to reflect its unique strategic position and the powerful earnings and operational momentum of the business.”
It points out that the company posted record interim results for the six months ended September 30 with operating profit up 60% and adjusted earnings per share up 54% on the comparable period in 2005. The company also continues to show strong growth, with average daily order book bargains of 331,000 for October 2006, up 45% compared to October 2005, it notes. Also, £22.3billion has been raised through IPOs so this year, 96% more than the same period in 2005 and more than any other exchange so far this year.
Chris Gibson-Smith, chairman of the London Stock Exchange, said, “Given the board’s unanimous view of the final offer from Nasdaq, I have rejected Nasdaq’s request for a meeting.”
Commenting on the offer, Clara Furse, chief executive of the London Stock Exchange, said “We believe Nasdaq’s final offer fails to recognise the outstanding growth record and prospects of our group on a standalone basis let alone the Exchange’s unique global position.”
LSE rejects takeover bid from Nasdaq
Final offer undervalues company, board says
- By: James Langton
- November 20, 2006 November 20, 2006
- 09:50