Nasdaq chief plays down merger

Nasdaq group chief executive Robert Greifeld dampened speculation that his exchange would jump back into the global merger frenzy, saying it could be tough to extract value from one.
By The Newsroom
Published 28th Jul 2011, 09:56 BST

On a conference call with analysts and reporters discussing Nasdaq’s better-than-expected quarterly earnings, he went out of his way to address the merger rumours being heard since the company’s bid for rival Ney York stock exchange Euronext failed in May, leaving it partnerless in an industry looking to consolidate.

“With our valuation today, those type of external opportunities are that much more difficult to show incremental value above and beyond some capital return to shareholders, or investments in internal growth opportunities,” said Mr Greifeld. London Stock Exchange Group, also affected by a failed merger plan this year, is prominently mentioned in Nasdaq merger speculation.

Hide Ad
Hide Ad

Nasdaq net profit was up four per cent and revenue grew seven per cent to $416m. The results included $29m in costs related to Nasdaq’s failed NYSE bid. Excluding that, Nasdaq earned $112m in the second quarter, up from $108m a year ago.