Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:
LSE Rebuffs Nasdaq [TheStreet.com]
Summary: It's no surprise the London Stock Exchange board unanimously rejected Nasdaq's latest takeover bid. The 1,243 pence/share offer valuing the LSE at $5.1b is only a 2% premium above last Friday's close, and is less than its current market value as shares have jumped above 1,300 pence again. The LSE said the offer "substantially undervalues the Company." The Nasdaq said it is "disappointed" with the LSE's "quick rejection" and for denying its request for a meeting. It will approach LSE shareholders with its offer, although it can't raise its bid unless advised to do so by LSE's board, or if a third-party makes a bid. LSE shares have jumped 100+% y-t-d and 50+% since the Nasdaq's first bid in March. A Telegraph article says short interest in the LSE has fallen sharply, and that the LSE's major investors are long-only hedge funds. Reuters reports the Times newspaper saying Nasdaq is preparing two secondary offerings in order to finance its bid. The WSJ notes, "Prospects for another bidder currently appear dim."
Related links: Nasdaq press releases: Response to Rejection of Offer for LSE, Acquisition of LSE Shares, "Final" Bid for LSE [pdf] and LSE plc press release: Statement re Nasdaq Final Offer. • Media coverage: Reuters, Telegraph, WSJ. Commentary: Nasdaq's LSE Bid's Fate Likely in the Hands of 'Market Sentiment' • Nasdaq Bids Again for LSE, Boosts Stake to 28.75% • Nymex's IPO: $34 Million Left on the Table? -- Exchanges' P/E Ratios.
Potentially impacted stocks and ETFs: Nasdaq (NASDAQ:NDAQ), London Stock Exchange (LSE:LN) • Competitors: NYSE Group (NYSE:NYX), Chicago Mercantile Exchange (NASDAQ:CME), InterContinental Exchange (NYSE:ICE), Int'l Securities Exchange Hldgs (ISE), NYMEX Holdings (NMX) • ETFs: iShares Dow Jones US Broker-Dealers (NYSEARCA:IAI), streetTRACKS KBW Capital Markets (NYSEARCA:KCE)
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