NASDAQ

A Stock Market is Fair Game!

A hostile bid is not an illegal one, and no stock market is an exception to legitimate acquisition! News that NASDAQ may increase its holdings of the London Stock Exchange (LSE), may have some British hearts aflutter, but most share owners should have reason to celebrate! LSE might well fare much better with NASDAQ power in the Board room!

Though NASDAQ is younger than the LSE, why should that matter? They may be headquartered on opposite sides of the Atlantic, but how is that relevant for stock market operations in this day and age? One of the top advantages of electronic trading is that a stock market’s management can now control operations at multiple remote locations.

One may argue that NASDAQ can breathe new dynamism in to the LSE, and help it withstand competition from emerging bourses better. The stock market climate in the U.S. is probably more harsh and demanding than in the quiet corridors of British power, but a change may be mutually beneficial.

NASDAQ already owns an influential 25% of the LSE, and is qualified to hike its ownership of this venerated stock market in October 2006. Stock market analysts feel that many of LSE’s owners could be attracted by NASDAQ’s offer, so do not be surprised if LSE’s control panel changes soon!

Consolidation in the stock market world is not as common as with companies and industry sectors, but there is no economic reason for this to continue. Global business development dilutes national sentiments, so there is no case to encourage the covert view that ownership of a stock market should reside within national boundaries. Indeed, the present U.K. government takes great pride in the international ownership of many public services, so they may be expected to be quite happy if their stock market is taken over by U.S. Interests!

There are reports that the Chicago Mercantile Exchange may be interested in the LSE as well. The NYSE has active moves to gain presence in key parts of Europe. Dubai, which has invested heavily in horse racing in the U.K., has a new found stock market passion. Exciting stock market times are ahead!

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