Analysts suggest Nasdaq may raise its bid to buyout Europe’s largest stock market, after London Stock Exchange stockholders rejected a recent $4.2 billion bid as too low.
Furthering signifying that a deal may be close, Reuters reported Tuesday that U.S. and U.K. market regulators agreed to cooperate more closely to make the market unification happen, and they insisted that regulations would not hinder a deal.
The Nasdaq Stock Market, the tech-heavy, second-largest market in the United States, has long been speculated to buyout the LSE, but the New York Stock Exchange entered into the picture and signaled it is seeking acquisitions. The NYSE stock has been highly valued since it went public just last week.
But Richard Herr at Keefe, Bruyette & Woods told Reuters that Nasdaq could increase it’s offer. The company could pay 1550 to 1650 pence a share and be accretive while Richard Repetto at Sandler O’Neill sees up to 1500 pence a share as accretive in 2007.
Nasdaq is reported to continue talks with the LSE, though the European market maintained it will not enter talks around the current bid price.
Reuters also reported Monday that Nasdaq Chief Executive Robert Greifeld may visit London as early as this week to talk with LSE shareholders, sources familiar with the matter told Reuters on Tuesday.