Nasdaq Stock Market Inc. withdrew a $4.2 billion-bid for the London Stock Exchange, abandoning an attempt to create the first transatlantic stock market.
Nasdaq, the largest US electronic equity market, pulled its offer of 950 pence a share, the New York-based company said in a statement today. LSE shares declined as much as 10.7% to 1,000 pence, the biggest drop since July 20, 2001.
“LSE looks a little bit left out in the cold,” said Stuart Fraser, a director at Brewin Dolphin, which manages $28 billion, including about 500,000 LSE shares. While the share price is still above Nasdaq’s bid, LSE is no longer “in active play,” he said.
Nasdaq is the third suitor in 14 months to walk away from LSE as chief executive officer Clara Furse, 48, holds out for more money. Furse, who has touted LSE’s viability as an independent company, on March 10 rejected Nasdaq’s approach. LSE shares surged 34% in the next four days to a record 1,190 pence as analysts forecast the New York Stock Exchange may join the bidding.
Australian investment bank Macquarie Bank Ltd. Deutsche Boerse pulled its 530 pence-a- share offer last March and Macquarie abandoned a bid of 580 pence a share this February. Euronext NV, which has been considering a purchase of LSE for more than a year, said two weeks ago that it was ready to enter merger talks with Deutsche Boerse.