The London Stock Exchange said on Wednesday that it was seeking discussions with other stock exchanges — a confession that came after Nasdaq bought up a 14.99% stake in the exchange the day before.
The LSE and Nasdaq are understood to have a meeting arranged for next week. However, the LSE is understood to have had discussions with Nasdaq’s larger rival, the NYSE Group, shortly after Nasdaq acquired its stake.
Most of Nasdaq’s near 15% stake came from UK money manager, Threadneedle Investment. manager.
But in its statement, which was issued after the close of London trading, the LSE tried to send a message that Nasdaq’s move does not mean the competition for one of Europe’s largest exchanges is over.
“Furthermore, the board is exploring the options available to it to create additional value for shareholders and customers, including discussions with other major exchanges,” the LSE said in the statement. “The board believes that the current share price does not fully reflect the shift in its growth prospects.”
Although the LSE’s preferred partner is Euronext, the Paris-based exchange, some of that company’s own shareholders are pressing it to merge with Deutsche Borse, according to reports from MSNBC. However, Euronext’s management who are unhappy with some of the key terms of the Brse’s proposal are also understood to have contacted the NYSE about a possible deal.
Along with shares of the LSE, shares in both Deutsche Borse and Euronext rose on Wednesday as investors took the view that Nasdaq’s pounce on the LSE left the British exchange with little other option than to consider a merger.