LSE in talks with Tokyo, Mumbai after shareholders reject Nasdaq bid

After rejecting a bid by Nasdaq over the weekend, the London Stock Exchange has reiterated its determination to establish ties with overseas stock markets. The LSE also said that it will complete a £50 million stock buyback that was interrupted by the Nasdaq bid and initiate another previously announced buyback worth £250 million. It did not say when the buybacks would begin.

The move to create ties with other stock exchanges was explained by LSE chairman Christ Gibson-Smith as an effort to enhance its standing in the global market by creating “competitive, collaborative, and strategic opportunities”. Reports have the LSE in current talks with both the Tokyo Stock Exchange and the stock market in Mumbai. It is not known how a recently announced cooperation agreement between the TSE and the New York Stock Exchange might affect these negotiations, but an LSE spokesman said that talks did not include any discussions about a merger at any time in the future. Still, the talks come at a time of increasing consolidation within the global sector.

The Nasdaq bid was only supported by around 1 percent of LSE shareholders aside from the 28.75 percent stake Nasdaq currently holds in the London exchange. The rejection of the bid came with comments from the LSE that Nasdaq offer was “inadequate” and that the American exchange did not appreciate the value of the LSE. Nasdaq is now prohibited by law from offering again for the exchange for 1 year.

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