So rare I get a good headline. Today the London Stock Exchange has rushed out its latest trading report. This is to try to defend itself from a hostile takeover bid by the American NASDAQ.
Why hostile? Well the LSE decided against a friendly merger last year. Instead the US firm has built up a stake of 26% in the LSE. However, the shareholders of the LSE seem reluctant to accept the bid.
The reality of the situation though is that the LSE should let itself be bought by the NASDAQ. With the NYSE/Euronext tie up, the other two big players in the US/EU are already going to be in a strong position to undermine London. With NASDAQ the LSE would be a stronger long-term company.
Independence is possible for the LSE, but why? Shareholders will do better to have a share in a larger firm with better prospects. Better still a tie-up with Dynamic NASDAQ as opposed to the sclerotic European exchanges should mean that LSE/NASDAQ wins in the long-term.
Today is the day when shareholders in LSE reveal their first thoughts on the bid. I hope they accept.