Bloomberg News

Nasdaq’s Greifeld Says Not Interested in LSE, NYSE Bids

January 31, 2012

(Updates with Greifeld’s comment in fourth paragraph.)

Jan. 26 (Bloomberg) -- Nasdaq OMX Group Inc. isn’t interested in buying the London Stock Exchange Group Plc or another attempt at NYSE Euronext, even as antitrust regulators recommend against Deutsche Boerse AG’s bid for the owner of the New York Stock Exchange, Chief Executive Officer Robert Greifeld said.

Nasdaq OMX, which made a failed hostile bid for NYSE Euronext in April, doesn’t want the LSE, Greifeld told reporters today in Davos, Switzerland. He said later that he wouldn’t consider a second attempt at NYSE Euronext because the U.S. Justice Department rejected the idea.

Should NYSE Euronext’s deal with Deutsche Boerse in Frankfurt be blocked, it would mean $37 billion in exchange mergers announced since October 2010 failed to close, according to data compiled by Bloomberg. LSE shares have rallied almost twice the Bloomberg World Exchanges Index since European Union regulators told NYSE Euronext and Deutsche Boerse in December their concessions weren’t enough to allay antitrust concerns.

“The one thing I know is we will not be making a run” for NYSE Euronext, Greifeld told CNBC today. “We attempted it, the DOJ said no. We listen to the U.S. government, so we carry on.”

December Meeting

NYSE Euronext and Deutsche Boerse are unlikely to garner enough support from European Union commissioners to overturn a looming veto over their plan to create the world’s largest exchange, four people familiar with the situation said this week. EU regulators told the two companies that they planned to prohibit the deal because it would monopolize derivatives trading in the region, according to two people familiar with the draft decision in December.

Nasdaq OMX joined with IntercontinentalExchange Inc. in April to offer $11.3 billion for the operator of the New York Stock Exchange, an attempt to counter Deutsche Boerse’s $9.5 billion all-stock bid two months earlier. U.S. regulators threatened to block Nasdaq and ICE’s deal in May, and they dropped it. LSE has jumped 6.8 percent since then.

Greifeld has twice tried and failed to buy LSE, both times taking his offer directly to shareholders after he was rebuffed by Clara Furse, then chief executive of LSE at the time. His lack of interest today is a shift from his position in June, when asked whether he was interested in combining with LSE or TMX Group Inc. in Toronto, Greifeld replied: “As I said: we talk to many people. We have serious conversations with a few. They would have to fall into the ‘many’ category.”

LSE has rallied 13 percent since regulators signaled they’d stop the NYSE-Deutsche Boerse deal. Nasdaq OMX is up 6.6 percent to $26. The Bloomberg World Exchanges Index advanced 7.2 percent in the same time.

--With assistance from Nandini Sukumar in London. Editors: Chris Nagi,

To contact the reporters on this story: Elisa Martinuzzi in Davos, Switzerland at emartinuzzi@bloomberg.net; Whitney Kisling in New York at wkisling@bloomberg.net.

To contact the editors responsible for this story: Andrew J. Barden at barden@bloomberg.net; Nick Baker at nbaker7@bloomberg.net.


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