The Nasdaq Stock Market, Inc. today announced that its board of directors has authorized the company to explore alternatives to divest its approximately 31% stake (61.3 million shares) in the London Stock Exchange Group plc.
Nasdaq has retained J.P. Morgan Securities Inc. and UBS Investment Bank to assist in its review of sale alternatives.
In making the announcement, Nasdaq stated its belief that its current stock price does not adequately reflect the value of its stake in the LSE. Nasdaq will use approximately US$1 billion of proceeds from any sale to retire senior term debt and intends to use the remainder to repurchase shares. Nasdaq estimates that selling the stake would increase its stand-alone earnings per share for 2008 by approximately 30¢ to 35¢.
There can be no assurance that the exploration of sale alternatives for the stake will result in any transaction, the firm said.
Nasdaq announces review of alternatives to divest its stake in the London Stock Exchange
Proceeds from any sale would be used to retire debt
- By: James Langton
- August 20, 2007 August 20, 2007
- 09:10