Companies

LSE proposals defeated by Nasdaq

London Stock Exchange (LSE) proposals to raise funds by issuing shares have been voted down by US exchange Nasdaq. Nasdaq, which last year made a failed attempt to take over the London exchange, is the LSE’s largest single shareholder, and said it voted against the AGM proposals because they were out of line with its own governance standards.

The resolutions, if passed, would have allowed the LSE to issue shares equivalent to nearly 33% of its issued share capital.

The LSE is planning a merger with Borsa Italiana for later this year, but said the failure to win this authority at the AGM does not impact on its growth strategy in any way.

Alex Brummer, Daily Mail City editor (12 July), suggested that Bob Greifeld, Nasdaq chief executive, must now have a big smile on his face after twice having been shown the door by the LSE. With 30% of LSE stock, said Brummer, Nasdaq could potentially lead a revolt at the EGM seeking approval for the Borsa merger, which needs at least 50% of the vote to be approved.

Greifeld, Brummer added, will have to be courted like all other shareholders, especially as he will have to be persuaded to substantially reduce Nasdaq’s stake.

August 2007