The Board of London Stock Exchange Group plc has rejected Nasdaq’s final offer to acquire the Company for 1243p per share in cash.
The Board firmly believes that the proposal, which represents only a 2 percent premium to the market price at the close of business on 17 November 2006, substantially undervalues the Company and fails to reflect its unique strategic position and the powerful earnings and operational momentum of the business.
On 8 November 2006, the Company posted record interim results for the six months ended 30 September 2006 with operating profit up 60 percent and adjusted earnings per share up 54 per cent on the comparable period to September 2005. The Company also continues to show strong growth, with average daily order book bargains of 331,000 for October 2006, up 45 percent compared to October 2005. And in the year to October, the Exchange has underlined its position as the world’s primary listing venue with 22.3billion raised through IPOs, 96 percent more than the same period in 2005 and more than any other Exchange so far this year. The new products, services and technology that the Company is developing are expected to drive further growth.
“Given the Board’s unanimous view of the final offer from Nasdaq, I have rejected Nasdaq’s request for a meeting,” says Chris Gibson-Smith, the Chairman of the London Stock Exchange.
“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,” adds Clara Furse, the Chief Executive of the London Stock Exchange.