The London Stock Exchange (LSE) has announced a £250 million share buyback as it continues to resist a hostile takeover bid from US exchange Nasdaq.
Having firmly rejected Nasdaq's £2.7 billion bid last November, the LSE board responded to direct appeals to shareholders from its rival by releasing its impressive final-quarter trading update ahead of schedule on January 9th.
Now it has again acted to deter an acceptance of the Nasdaq offer by announcing the share buyback in a circular issued to shareholders.
The exchange also delivered a bullish prediction of increased trading activity, which it says will rise by 180 per cent on current levels in the 2008 financial year.
"The board's confidence in the… [LSE's] growth prospects explains the focus on ensuring the standalone value of the… [LSE] is fully understood," chairman Chris Gibson-Smith said.
"Nasdaq's wholly inadequate offer persists in undervaluing the world's capital market. Shareholders should not be persuaded to sell their shares below their true value," he added.
Despite LSE's share value now rising above Nasdaq's latest offer, the US exchange said it would not increase its offer unless a new competitor bettered its bid.
Shares in LSE rose by 0.38 per cent on early morning trading.
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