TEXT OF STORY
LISA NAPOLI: How do you push off a persistent suitor? Ask the London Stock Exchange, which is trying to deflect advances from NASDAQ. From London, Stephen Beard has the latest in the saga.
STEPHEN BEARD: One week to go before NASDAQ’s offer expires and the London Stock Exchange has upped the ante.
The board has promised to buy back an extra $491 million worth of its own shares. The shares would be canceled, and that would push up the value of the remaining stock.
The object: to make NASDAQ’s offer look less attractive.
The London Exchange has also cut its dealing charges and has forecast that its trading volume will rocket next year.
The battle seems to be tipping in London’s favor says Justin Urquart-Stewart of Seven Investment.
JUSTIN URQUART-STEWART: Over the past two weeks the London Stock Exchange has actually seemed somewhat stronger and the value of NASDAQ’s offer, while still there, just doesn’t seem to have quite the credibility of before.
Shares in the London Exchange are now worth 6% more than NASDAQ’s bid. But analysts say this battle could still go either way.
In London, this is Stephen Beard for Marketplace.
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