Government pledges protection for LSE regulation

News Article - 13 September 2006
Category: Business

Nasdaq has not made any further contact with the London Stock Exchange (LSE) regarding a potential takeover bid, LSE chief executive Chris Gibson-Smith has said.

Speaking to Reuters, the LSE boss did not shed light an Observer story which claimed the US-based exchange was considering making a hostile bid for the London Stock Exchange, which it had already bought 25 per cent of in stock.

Asked about the newspaper report, Mr Gibson Smith told the news agency: "There has been no recent contact". The chief executive spoke at a reception in Seoul, arranged to boost the profile of the LSE among South Korean companies.

He added he had nothing further to say to previous comments he had made on the issue.

The LSE had already rebuffed a £2.2 billion takeover bid by Nasdaq in March 2006. In July the exchange said that it would oppose any deal which would reduce London's standing as a financial centre.

A source told Reuters that Nasdaq was unlikely to go straight into making a hostile bid, acknowledging British takeover rules which state that the company will need to wait six months prior to making another approach.

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