The London Stock Exchange has rejected US-based NASDAQ’s final bid of $5.1 billion that would have resulted in LSE being acquired by NASDAQ in what would have been the first transatlantic stock exchange. The reason given was that the amount was too low for consideration so much so that the board was not willing to meet further discussing the offer. Following the announcement, there had been a chaotic trading in LSE shares and closed at almost 6% higher at 1,243 pence that is significantly higher than NASDAQ’s bid offer of 1,291 pence per share. During the tumultuous trading nearly 50 million LSE shares changed hands. Now the price is the minimum NASDAQ has to pay until May 2007 because under British takeover rules, that is the average price at which NASDAQ bought its 25.3% initial stake. On this, Clara Furse, CEO, LSE said: We believe Nasdaq’s final offer fails to recognise the outstanding growth record and prospects of our group on a stand alone basis, let alone the exchange’s unique global position. So, are we going to see anymore ‘final’ bids from NASDAQ to acquire LSE? Already, it has burnt its fingers twice in trying to acquire LSE. I guess given the ‘unwillingness’ of the board of its UK counterpart, NASDAQ will most probably refrain from bidding for the stock exchange in the coming couple of years at least if not more.