Subject category:
Strategy and General Management
Published by:
IBS Research Center
Length: 17 pages
Data source: Published sources
Topics:
NASDAQ (National Association of Securities Dealers Automated Quotation) Stock Exchange; London Stock Exchange; Over-the-counter market; Sets; SEAQ (Stock Exchange Automated Quotations); Market services; Issuer services; Financial services; Financial Services Authority; Market maker; INET; NASDAQ National Market; Electronic trading; Alternative investment market; NYSE (New York Stock Exchange)
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Abstract
On 12 December 2006, the US electronic stock exchange NASDAQ (National Association of Securities Dealers Automated Quotation) placed a US$5.3 billion hostile bid for the London Stock Exchange (LSE). NASDAQ was already holding a 28.75% share in LSE. NASDAQ was the largest electronic screen-based equity securities market in the US, with listings from 3,206 companies from 37 countries across all industry sectors, whereas LSE was the largest equity exchange in Europe, and the fourth largest in the world measured by the domestic market capitalisation of listed shares. The combination of the two exchanges was anticipated to create the most active, leading, global, cross-border, equity market platform. It was believed that to grow and offer world-class financial services, stock exchanges needed to consider moves towards consolidation and mergers. However, analysts perceived challenges for NASDAQ as it was rejected twice by the LSE earlier. The case deals with the prospective merger between the two stock exchanges, its potential synergies and challenges.
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Abstract
On 12 December 2006, the US electronic stock exchange NASDAQ (National Association of Securities Dealers Automated Quotation) placed a US$5.3 billion hostile bid for the London Stock Exchange (LSE). NASDAQ was already holding a 28.75% share in LSE. NASDAQ was the largest electronic screen-based equity securities market in the US, with listings from 3,206 companies from 37 countries across all industry sectors, whereas LSE was the largest equity exchange in Europe, and the fourth largest in the world measured by the domestic market capitalisation of listed shares. The combination of the two exchanges was anticipated to create the most active, leading, global, cross-border, equity market platform. It was believed that to grow and offer world-class financial services, stock exchanges needed to consider moves towards consolidation and mergers. However, analysts perceived challenges for NASDAQ as it was rejected twice by the LSE earlier. The case deals with the prospective merger between the two stock exchanges, its potential synergies and challenges.