Nasdaq's Risky Bid [TheStreet.com]
Summary: Both Moody's and S&P have placed Nasdaq Stock Market Inc. on a "credit watch" after the company decided to finance its takeover bid for the London Stock Exchange almost entirely with loans. The latest company to willingly saddle itself with debt in pursuit of a large acquisition, many on Wall Street feel the deal means Nasdaq is taking on too much leverage for an acquisition rife with "integration risk,'' given London's continuing opposition to a merger.
Related links: Media coverage: WSJ. Commentary: LSE Rejects Nasdaq Bid • Nasdaq's LSE Bid's Fate Likely in the Hands of 'Market Sentiment' • The Long Case for NDAQ • CRAMER'S TAKE ON NDAQ.
Potentially impacted stocks and ETFs: Nasdaq Stock Market Inc. (NDAQ) • Competitors: NYSE Group (NYX).
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