Hedge Funds Say They Are Willing To Sell Off LSE Shares For Bargain Price

Hedge funds holding roughly 20% of the London Stock Exchange have reportedly said they would be willing to relinquish their shares at about GBP13 each to potential bidders, the Financial Times reported Wednesday The statements made by the hedge funds

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Hedge funds holding roughly 20% of the London Stock Exchange have reportedly said they would be willing to relinquish their shares at about GBP13 each to potential bidders, the Financial Times reported Wednesday

The statements made by the hedge funds may leave NASDAQ in a position to pick up the exchange for a lower price than it had originally planned to pay in its earlier offer. NASDAQ picked up a 25% stake of the LSE earlier this year.

NASDAQ’s new position for the LSE may fuel the New York Stock Exchange and Euronext to push ahead more quickly with their announced merger plans.

NASDAQ has been free to make another play for the LSE since Oct. 2, six months after it withdrew a previous offer that the LSE rejected.

Under British takeover rules, if NASDAQ were to offer a bid now, it would have to offer the highest price it paid when it built its stake earlier this year.

But if it waits until May, NASDAQ can bid at a lower price.

Reports indicate that NASDAQ may not be in a rush to acquire the LSE, possibly waiting to see hoe the deal between the NYSE and Euronext turns out.

The Financial Times also reported that some shareholders told the newspaper they had met advisers and LSE executives who hinted they had other options available which would beat a NASDAQ offer and provide a better deal for shareholders.

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