LSE has plans for NASDAQ next?

TSX / LSE Merger Part 11

News item: London Stock Exchange is eyeing a takeover of its rival Nasdaq

Now, you have to hand it to the guy/gal who fed the Sunday Times the idea cum leak that the London Stock Exchange was planning to merge with NASDAQ “later this year”, once it got done with its TSX deal (hat tip Reuters via Dan Primack). The article allows that talks have not even been held between the players, making the newsworthiness of the story a trifle suspect. Particularly considering the fact that the NASDAQ’s market cap is US$4.9 billion, as compared a relatively modest GBP$2.4B (US$3.8B) at the LSE.

The LSE is definitely a more credible bidder for the NASDAQ if it swallows the TSX first, mind you, since at that point the LSE/TSX would have a combined market cap well larger than that of the NASDAQ. Which means, for those paying attention, the rumoured follow-on LSE / NASDAQ deal is almost feasible.

All of this will give the LSE some serious political grief this week, but it serves as a poignant reminder of an obvious risk that has already been highlighted to all and sunder: it’s unlikely that the LSE/TSX is the last event on the fight card (see prior posts “TSX’s PR recovery underway” Feb 22-11 and “Presentation to the Ontario Select Committee on TSX/LSE merger” Mar 2-11).

Which is all the more reason why MPPs need to consider my proposal of a Golden Share, should they ultimately recommend the transaction to the Ontario Legislature.

MRM