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This Day In Market History: OM Group Makes Hostile Takeover Bid For LSE

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This Day In Market History: OM Group Makes Hostile Takeover Bid For LSE

Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date.

What Happened?

On this day 18 years ago, Swedish company OM Group made a $1.2-billion hostile takeover bid for the London Stock Exchange.

Where The Market Was

The Dow Jones Industrial Average closed at 11,215.10 and the S&P 500 traded at 1,509.84. Today, the Dow is trading at 26,064.02 and the S&P 500 is trading at 2,897.52.

What Else Was Going On In The World?

In 2000, Microsoft Corporation (NASDAQ: MSFT) released Windows 2000. AOL merged with Time Warner. The average cost of a new car was $24,750.

Swedes Take A Shot At LSE

After 227 years in operation, the LSE was taken by surprise in August 2000 when OM Group made a hostile takeover bid. The LSE board repeatedly criticized the $1.2-billion offer as “inadequate," prompting OM Group to eventually raise its bid to around $1.46 billion.

The LSE still opposed the takeover bid, and OM Group was denied after receiving just 6.7-percent LSE shareholder approval for its buyout in a November vote.

Seven years later, Nasdaq Inc (NASDAQ: NDAQ) would step up with its own $5.3-billion bid to buy the LSE. Despite controlling 28.75 percent of voting shares at the time, Nasdaq received the approval of just 0.4 percent of remaining shareholders and the LSE once again remained independent.

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Public domain photo via Wikimedia. 

Posted-In: London Stock Exchange OM Group this day in market historyEducation Eurozone Top Stories Markets General Best of Benzinga

 

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