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Mergers, Acquisitions and Takeovers Case Study

Case Title:

NASDAQ’s Proposed Takeover of LSE: Potential and Challenges

Publication Year : 2010

Authors: S Chhaochharia

Industry: Banking, Insurance and Financial Services


Case Code: MAA0202IRC

Teaching Note: Not Available

Structured Assignment: Not Available

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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.

Pedagogical Objectives:

Keywords : 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)

Contents : 
The Nasdaq Stock Exchange
The London Stock Exchange
The Takeover Tussle
Prospective Synergies
Challenges Ahead
Segment-Wise Revenue Of Nasdaq
Lse: Globalisation Gathers Pace
Wide Ranging Benefits To All Users

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