Despite being rejected by the London Stock Exchange, Nasdaq has formally launched its four billion euro hostile bid, appealing directly to investors. The LSE board has called the offer inadequate as it “fails to recognise the group’s prospects and outstanding growth record.”
Nasdaq already owns 28.75% of the LSE and hopes that between now and 11 January, enough shareholders will sell for it to take over Europe’s biggest stock market.
Analysts say Nasdaq will have to increase the price it is offering to persuade enough shareholders to sell as many of them are hedge funds and other short-term holders looking for a profit. The shares currently trading higher than the New York electronic bourse is offering.