Nasdaq selling LSE stake for OMX acquisition

20 August 2007

Mumbai: Nasdaq Stock Market Inc, which is locked in a $4 billion bidding war with Borse Dubai for control of Nordic exchange OMX, will relinquish its £797 million pound stake in the London Stock Exchange, five months after its failed takeover bid.

New York-based Nasdaq, which needs overseas acquisitions to gain an international presence, said it wants to sell its LSE shares, but could not guarantee that it would.

Nasdaq, which bought into LSE over time at an average of about 11 pounds a share, reported a paper profit of $245.2 million last year.

Nasdaq said the sale of LSE stake would boost its 2008 earnings per share by about 30 cents to 35 cents each. That would lift Nasdaq's 2008 earnings per share and lower its price-to-earnings multiple.

Nasdaq said it would use $1 billion of the sale proceeds to retire senior debt and use the reminder to buy back shares.