Nasdaq will not revise its bid for the London Stock Exchange Group, according to a formal response document released by the company. It accused LSE’s board of “placing independence before shareholder value,” and said it would not increase its offer for the company, calling on shareholders to accept the 1,234p per share bid worth 2.7 billion.
The New York-based Nasdaq, which owns a 29 percent stake in the LSE, has made two offers in the last nine months to take control of the LSE. Most recently Nasdaq has accused the London exchange of “milking its dominant position,” and has given it until 11 January to accept its second offer. If not accepted, Nasdaq has threatened to sell its share of LSE and set up a rival London market.
“The final offers represent full and fair value to existing LSE shareholders, and the proposed LSE/Nasdaq combination presents a unique opportunity to create a global, balanced and scalable exchange business,” says Robert Greifeld, CEO of Nasdaq.
Though LSE refused to comment on the latest response from Nasdaq, it is not expected to recommend the offer. However, if Nasdaq sells it shares the LSE could see a sharp decline in value.