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The Board of London Stock Exchange Group plc (the “Exchange”) is posting today a shareholder circular summarising the key value arguments for rejecting Nasdaq’s wholly inadequate final* offer. It draws specific attention to the fact that the December 2006 trading P/E multiples for the major listed exchanges have risen by, on average, 10.5 per cent. since Nasdaq announced its offer on 20 November 2006. It also highlights that the December 2006 trading P/E for Deutsche Boerse of 25.0 times and the 30.6 times offered to Euronext shareholders in its agreed merger with NYSE are both above Nasdaq’s offer multiple of 24.4 times.
Chris Gibson-Smith, Chairman of the Exchange, commented:
“The London Stock Exchange has delivered outstanding performance, has excellent growth prospects and occupies a unique strategic position at the centre of the world's international equity flows. The Board continues to recommend strongly that Exchange shareholders reject Nasdaq’s wholly inadequate offer and take no action in respect of their shareholdings.
Shareholder Circular - Response to NASDAQ’s Offer (5 February 2007)
