London Stock Exchange PLC today rejected an unsolicited conditional takeover offer by Nasdaq Stock Market Inc., New York, that valued the U.K. exchange at £2.4 billion ($4.2 billion), according to a statement from the LSE.
"The Board of London Stock Exchange firmly believes that the proposal, which represents only an 8% premium to the current market price, substantially undervalues the company, its unique position and the very significant synergies that would be achievable from the combination of London Stock Exchange with any major exchange group," the statement read. LSE officials were not available for comment.
In its own statement, Nasdaq officials confirmed they submitted the proposal Thursday.
"Nasdaq believes that its proposal would represent an attractive offer for shareholders, listed companies and the trading community, and reflects unique benefits for LSE which have not to date been proffered by other parties," according to the statement.
Nasdaq spokeswoman Bethany Sherman was not available for further comment by press time.