Three Global Majors eyeing Nasdaq's stake in LSE
Nasdaq is planning to sell up to half of its holding in London Stock Exchange (LSE). Many exchanges have approached Nasdaq to acquire the same. Nasdaq currently holds 31% stake in LSE.
There is an insider report that Deutsche Borse of Germany may buy Nasdaq shares for £400m. Deutsche Borse has been very keen to invest in LSE. The officials at Deutsche Borse have declined to comment on the situation.
Another strong party looking for the deal is Temasek. Temasek is the investment arm of Singapore government. Senior officials at Temasek have denied the reports and have not commented on the plans of the agency. Temasek is one of the world’s most active sovereign wealth funds. Investment in LSE is ideal for Temasek and will be in line with their Global investment policy in financial services sector. If Temasek buys full 31% from Nasdaq, it may ready for a full takeover of the LSE.
Third party interested in the deal is Borse Dubai. Nasdaq is competing with Borse Dubai to buy Norwegian exchange OMX.
Nasdaq may even sell off its complete 31% stake in LSE. The Nasdaq share in LSE is valued at £797m. Exchanges all over the world have been trying to make acquisitions to cut costs and offer better services. This will even increase the efficiency.