Wall Street Beat: Nasdaq bid also a sign for IT
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(InfoWorld) - The Nasdaq Stock Market's efforts to buy the London Stock Exchange PLC is another milestone in globalization, and touches the world of IT. As exchanges merge and increase the fluidity of funds globally, a new world of competitive options open. The Nasdaq's latest bid, launched Nov. 20, to buy the part of the LSE it doesn't already own for Â£2.7 billion ($5.1 billion) is poignant in its historic and political overtones. The Nasdaq tapped technology to match buyers and sellers -- starting with simple bulletin boards -- and helped revolutionize trading over the last 20 years. As world class IT companies like Microsoft and Oracle went public on the Nasdaq, the exchange rode the computerization of modern life to great success. Most exchanges have adopted some form of electronic trading, including Nasdaq archrival the New York Stock Exchange (NYSE Group Inc.) and the LSE itself. Exchanges have unique advantages and retain distinct personalities, however. Linux vendor Red Hat Inc., for example, will move from the Nasdaq to the NYSE Tuesday. "The New York Stock Exchange has much stronger global recognition, and we're looking for a global branding image," said Linda Brewton, Red Hat manager of investor relations. She also noted that even though the NYSE has adopted electronic trading, trading is still done under live market specialists and that this reduces share-price volatility. The LSE, which traces its history back some 300 years, has rejected Nasdaq's bid, claiming it undervalues the exchange. The mercurial mayor of London, Ken Livingstone, is also on the case. Last week he asked the U.K.'s Office of Fair Trading to investigate, claiming that the acquisition would eliminate competition to U.S. markets for international company listings. Livingstone also echoed the concerns of many Europeans, that as U.S. exchanges merge with European markets, tighter U.S. regulations would hamper Europe's growing market competitiveness. This last issue has also caused bumps in the NYSE's deal to merge with the Euronext NV exchange. Nasdaq, having already bought about 29 percent of the LSE earlier this year, is appealing to shareholders. Nasdaq Chief Executive Officer Robert Greifield apparently believes the exchange needs the merger to compete. The merging of exchanges and the broader, growing numbers of mergers and acquisitions that IT companies are involved in are part of the same phenomenon, according to according to Eric Gebaide, managing director of Innovation Advisors, a New York investment firm. "It's a manifestation of the globalization of financial markets," Gebaide said. "That in turn is a precursor of the globalization of technology." When companies in Europe and Asia enjoy the same sort of availability of capital U.S. companies have, it can lead to greater competition for U.S. companies. However, U.S. companies can also take advantage of the new era of capital. For example, U.S. companies looking to efficiently use capital now have access to alternative local financing for offshore ventures, Gebaide notes. In the new global market, companies can even go public with offshore ventures, he suggests. The Nasdaq bid will probably play out into 2007. The offer to shareholders can be extended to 60 days, and the Nasdaq can still buy LSE shares on the open market. But no matter how it ends, the internationalization of capital markets will continue to have a profound impact.
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Some say indexes dropped Thursday because investors are idling until some good news comes around. Maybe so, but the trading volume of the Nasdaq-100 tracking stock, which we use to get a better feel for how individual tech shares are selling, ...
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Wall Street set aside anxiety over news that the economy lost jobs last month and focused on Microsoftâs bid for Yahoo.
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Nasdaq Stock Market Inc , the second-largest U.S. equities exchange, posted a higher quarterly profit on Wednesday, helped by a gain from the sale of its stake in the London Stock Exchange .
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Even though stocks have climbed the last two days, there are plenty of signs that the market may stay in the doldrums for a while.
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Stocks rose in early trading Monday after a fresh round of buyout news offered evidence that Wall Street's penchant for dealmaking hasn't disappeared.
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Dow Jones won out over a list of competing media bidders to gain control of MarketWatch with its $18-a-share offer. If the buy is approved by shareholders, Dow Jones will gain a valuable foothold in the fast
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I think a deal between News Corp. and Dow Jones would bode well for Wall Street Journal readers.
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Nasdaq Stock Market Inc  is  considering making a hostile bid for the London Stock Exchange  , in which it has amassed a stake of over 25 percent,  weekly UK newspaper The Observer said on Sunday, without citing  any sources.
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Wall Street ended an otherwise strong week with a mixed finish yesterday. The Dow Jones Industrial Average rose 22.93, or 0.23 percent, to 10,027.
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Wall Street stocks rose on Friday after strong results from Research (NASDAQ:RIMM) In Motion provided a boost to the technology sector and on reports that Merrill Lynch may get a multi-billion dollar capital infusion from Singapore.
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NEW YORK (CBS.MW) -- US stocks staged a late-day rally to end higher Wednesday, with the Nasdaq climbing for the seventh straight session, as investor appetite for attractively valued shares trumped concern over a spate of profit warnings and a new high
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NEW YORK (CBS.MW) - US stocks traded mixed Thurday as Merck shares lost a quarter of their value, dragging blue chips lower, but the Nasdaq moved higher, buoyed by gains in the semiconductor sector.
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The Nasdaq Stock Market  bid  $3.7 billion for Nordic bourse owner OMX  on Friday as  it set its sights on expanding beyond the U.S. market and adds  to a wave of stock market consolidation.
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Nasdaq Stock Market Inc  has given potential suitors until the end of the week to express interest in its 31 percent stake in the London Stock Exchange Group Plc  but has not yet received any offers, the Wall Street Journal reported.
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Knowing a little bit more than the next guy is the name of the game on Wall Street.
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Nasdaq will start an options exchange to capitalize on a growing market whose competitors and structure are rapidly changing.