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Nasdaq makes £2.7bn offer for LSE Nasdaq makes £2.7bn offer for LSE
(20 minutes later)
A takeover offer worth £2.7bn ($5.1bn) has been tabled for the London Stock Exchange (LSE) by the US Nasdaq market.A takeover offer worth £2.7bn ($5.1bn) has been tabled for the London Stock Exchange (LSE) by the US Nasdaq market.
Under the deal Nasdaq, which already owns more than 25% of the LSE's stock, said it would pay 1243 pence per share.Under the deal Nasdaq, which already owns more than 25% of the LSE's stock, said it would pay 1243 pence per share.
Shares in the London market have surged more that 124% over the past year amid ongoing speculation that it will be subject to a takeover offer.Shares in the London market have surged more that 124% over the past year amid ongoing speculation that it will be subject to a takeover offer.
A number of foreign suitors, including the New York Stock Exchange, have approached it in recent months.A number of foreign suitors, including the New York Stock Exchange, have approached it in recent months.
However, the UK watchdog has voiced concerns about a foreign takeover as it could lead to regulatory changes. In a statement, Nasdaq said it planned a dual listing in London and New York if its offer is successful.
'Final offer'
"We are excited about the prospect of combining two strong businesses to form the leading global, cross-border equity market platform giving issuers the ability to dual-list simultaneously in London and New York," said Nasdaq president and chief executive Robert Greifeld.
"The combined entity will be well positioned to lead further consolidation and compete effectively for the benefit of all market users."
Nasdaq said it would not be revising its "final offer" unless another company decided to make a bid for the London market.
The bid is Nasdaq's second attempt at taking over the firm.
In March, it dropped a proposed £2.43bn ($4.2bn) bid for the exchange after the LSE rejected its advance.
The US firm is the latest in a long line of foreign suitors to approach the London market.
German market Deutsche Boerse, Australian investment bank Macquarie and the pan-European exchange Euronext have all abandoned offers for LSE since December 2004.
Regulatory worries
The approaches have prompted the UK watchdog to voice concern about a foreign takeover as it could lead to regulatory changes.
Nasdaq attempted to ease these concerns with its offer saying that the UK exchange would continue to be regulated solely by the UK's Financial Services Authority.
Meanwhile, the LSE has resisted approaches saying that it can continue to grow alone.Meanwhile, the LSE has resisted approaches saying that it can continue to grow alone.
Earlier this year, LSE chief executive Clara Furse said the company would not do a deal for the sake of doing a deal.Earlier this year, LSE chief executive Clara Furse said the company would not do a deal for the sake of doing a deal.
However, analysts and market observers have speculated that stock exchanges will need to merge if they want to keep on growing and offer a wide-range of global financial services. But analysts and market observers have speculated that the Nasdaq is in a strong position and stock exchanges will need to merge if they want to keep on growing and offer a wide-range of global financial services.
Last month, City leaders warned that the LSE risked losing its dominant market position in the face of growing global competition.