What Problems? Nasdaq Lures Kraft From NYSE
With all of the negative media surrounding the botched Facebook (NASDAQ: FB) IPO, investors may be forgetting that the NASDAQ (NASDAQ: NDAQ) is still a strong franchise and is still attracting new listings. CEO Bob Greifeld stated on CNBC recently that the comapny's backlog of IPO's has actually grown since Facebook went public. Further, Kraft (NYSE: KFT) has now announced that they will de-list from the NYSE (NYSE: NYX) and re-list on the Nasdaq.
Kraft shareholders recently approved a spin-off plan, in which Kraft will divide its company into two new ones. One company, Mondelez International, will get the faster-growing global snacks business and will trade under the ticker MDLZ. The other business, the North-American grocery business, will trade under KRFT, and the KFT ticker will be retired.
Nasdaq's pipeline of forth-coming IPO's remains strong, according to Greifeld. The Nasdaq has been a hub of technology IPO's over the last few decades, and one bad IPO may not derail that. The sheer size of the offering and the extremely high expectations put pressure on the Nasdaq's systems. Nasdaq announced that it will set aside $40 million to compensate those that had trading glitches, but some, including CEO of Knight Capital Tom Joyce, say that this number is not clearly enough.
The NYSE and the Nasdaq have been fighting for listings for years, and this is just the latest example of a large company jumping ship. TD Ameritrade (NYSE: AMTD) is a notable company to have jumped from the Nasdaq to the NYSE recently. Nasdaq shares are down 1% this morning to $21.89, NYSE shares are down .36% to $24.68, and Kraft shares are up .26% to $38.26.
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