The war of words between LSE and NASDAQ continued a pace yesterday, with LSE’s chairman Chris Gibson-Smith saying the US stock exchange’s latest statement is “long on rhetoric and short on valuation arguments.”
The latest round of verbal fencing came when NASDAQ published a document saying the LSE “completely failed to engage with Nasdaq with respect to a recommended transaction”. It also criticised LSE growth projections.
But in return Mr Gibson-Smith said: “The board believes it is increasingly clear that Nasdaq’s interests are not aligned with those of other shareholders, and Nasdaq’s self-serving criticism of the exchange’s growth prospects underlies its obvious need to acquire it - albeit on the cheap. The document published by Nasdaq today is once again long on rhetoric and short on valuation arguments.”
Many analysts think it’s strange that the NASDAQ is questioning LSE growth potential - why do they want to buy them, goes the argument.
LSE CEO, Clara Furse is highly respected, and somewhat popular with the press. She seems to have successfully managed to persuade the UK media to back her.
We do wonder, however, whether a NASDAQ purchase of LSE, if it means the import of US ideas on entrepreneurism to the UK, could be good news for the UK.
Alas, there is a failure by many in the City and in the press to understand how important the visionary entrepreneur is. And until this changes, the UK will always lag behind the US in productivity.
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