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The Board of London Stock Exchange Group plc (the “Exchange”) rejects the arguments put forward by the Nasdaq Stock Market, Inc. in the document it issued today.
Nasdaq makes a large number of misleading assertions in its document. The Exchange will address these more fully in its next circular to shareholders but would point out the following by way of example:
- Nasdaq’s self serving choice of comparable exchanges is narrow and fails to reflect the value placed by global investors on the exchange sector and its potential for growth. Even on Nasdaq’s own figures for 2007 and 2008 the P/E of Nasdaq’s offer is at a discount to the weighted average P/E of Nasdaq’s selected London Stock Exchange peer group on a trading basis. Nasdaq is thus itself demonstrating that it is not paying a premium for control.
- In addition, Nasdaq’s presentation of relative fee levels is blatantly misleading; the Exchange has lower, not higher, fees per unit of value traded than other major European exchanges. Moreover, as the Exchange reiterated in its November Interims statement the Exchange has a policy of stimulating growth by consistently reducing costs for its customers over time, which it will continue to do.
The Board continues to strongly recommend that Exchange shareholders reject Nasdaq’s wholly inadequate offer and take no action in respect of their shareholdings.
Clara Furse, Chief Executive Officer of the Exchange, commented:
“The current Nasdaq offer values the Exchange at a lower P/E ratio than Nasdaq’s withdrawn proposal in March, during a period when the Exchange has announced that very strong organic growth is continuing as it facilitates a structural shift in trading through the introduction of new technology. Exchange shareholders should not be persuaded into selling their shares well below their true value by Nasdaq’s bluster.”
Chris Gibson-Smith, Chairman of the Exchange, commented:
“The Board believes that Nasdaq’s offer does not even give shareholders standalone value. We trust that shareholders will not be misled by Nasdaq’s document and urge them to continue to reject this wholly inadequate offer. The Board will steadfastly defend shareholders’ interests on value.”
