NASDAQ OMX Group

The NASDAQ OMX Group (NASDAQ: NDAQ) is a New York City-based American multinational financial services company. NASDAQ is the owner and operator of the NASDAQ stock market. It also owns and operates eight stock exchanges in the Nordic and Baltic regions and Armenia under the NASDAQ OMX brand. The President and CO of NASDAQ OXM Group is Robert Greifeld.

History

Merger Attempt with London Stock Exchange

The London Stock Exchange Group (LSE), one of the world’s major exchanges, had received a £1.6 billion takeover offer from Macquarie Bank. LSE rejected the offer in December, 2005, calling it as “derisory”. Following Macquarie’s offer, LSE received another takeover offer.

NASDAQ offered to acquire LSE for £2.4 billion in March 2006. However, the offer from NASDAQ was also rejected by LSE. NASDAQ decided to pull-out its bid. But, two weeks later, the exchange entered into a deal with Ameriprise Financial’s Threadneedle Asset Management unit, which was LSE’s largest shareholder. Under the terms of the deal, NASDAQ agreed to acquire Threadneedle Asset Management’s entire stake in LSE, which consisted of 35.4 million shares. NASDAQ acquired the stake at £11.75 per share. NASDAQ followed this up with the purchase of 2.69 million additional shares of LSE stock, which increased NASDAQ’s stake in LSE to 15%. Although the name of the seller of 2.69 million shares was undisclosed, it came about at the same time when Scottish Widows sold its 2.69 million shares in LSE. The purchases were seen as an attempt by NASDAQ to force LSE to discuss either a partnership or eventual merger. The move was also an attempt to block other exchanges interested in a merger with LSE.

NASDAQ continued with its purchases, managing to raise its stake in LSE to 29%. But, after this NASDAQ only managed another 0.4% of shareholders by the deadline and therefore its offer was rejected on February 10, 2007.

Boston and Philadelphia Exchanges Acquisition

Although NASDAQ failed to strike a deal with LSE, the company was successful in acquiring two other exchanges in 2007. On October 2, 2007, NASDAQ acquires the Boston Stock Exchange. This was followed by the acquisition of the Philadelphia Stock Exchange on November 7, 2007.

OMX Acquisition

In 2007, NASDAQ also reached an agreement to acquire a Swedish-Finnish financial company, which controlled 8 stock exchanges in Nordic and Baltic region called OMX. The agreement was reached on May 25, 2007.  Following the acquisition, the NASDAQ OMX Group was formed.