Thursday, June 21, 2007

Borsa Italiana to merge with LSE

Heard something interesting today. We've all been long aware of the fact that Nasdaq has pursued the buy the London Stock Exchange (LSE) at least twice in the recent years. While the bids were being turned down by LSE, now they come up with talks with Borsa Italiana for a smashing merger. This combination would have listed on it, companies valued more than $5.1 trillion!

This is a clear indication of globalisation and consolidation of international financial markets. Exchanges worldwide have never been under such pressure before as they are now , from their shareholders, to merge in order to cut costs and offer a broader range of products at the same time.

We have to wait and see how Nasdaq responds to this. But I think they should still pursue the larger LSE even if this deal with Borsa Italiana works out. The European tinge could add more flavor to Nasdaq.



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