Nasdaq down after London tells shareholders to reject hostile offer

SHARES of the Nasdaq Stock Market plunged to their lowest levels in over a month after the London Stock Exchange LSE.L urged shareholders to reject a £2.7 billion (€4.02bn) hostile bid from the largest US electronic stock market.

The London exchange, which issued a bullish profit forecast and pledged a dividend hike yesterday, said Nasdaq’s second offer this year substantially undervalued it in relation to its peers, adding that its stellar growth would continue to be boosted by a rise in electronic trading and a slew of companies — many foreign — listing on its markets.

Nasdaq shares were down $1.49, or 4.1%, at $34.50 in morning trading.