Nasdaq plans to explore sale of LSE stake
US stock market Nasdaq says it plans to explore selling its 31 per cent stake in the London Stock Exchange Group PLC.business Updated: Aug 20, 2007 15:32 IST
US stock market Nasdaq said on Monday it plans to explore selling its 31 per cent stake in the London Stock Exchange Group PLC.
Nasdaq said it had retained JP Morgan Securities Inc and UBS Investment Bank to assist in its review of sales alternatives.
The stock exchange said it is pursuing the sale because it believes its current stock price does not adequately reflect the value of its stake in the LSE.
It will use about $1 billion in sale proceeds to retire senior term debt, and to repurchase shares, according to a company statement.
Nasdaq said it sees the sale adding between 30 and 35 cents to its earnings per share in 2008. Analysts on average had expected the stock exchange to post earnings of $1.69 per share in 2008, according to Reuters Estimates.
Nasdaq shares closed at $31.75 on Friday.