Nasdaq Stock Market Inc. (NDAQ:NDAQ) shares fell $2.54, or 6.83%, before settling at $34.66 after only 0.6% of London Stock Exchange shareholders voted in favor of the Nasdaq's buyout offer. The number fell far short of the required 51% needed and puts the Nasdaq in a difficult position with it's 29% stake in the exchange, costing roughly $1.68 billion. Many investors are now skeptical as to whether or not the exchange can unload its shares without deflating the LSE's price significantly, which would cause large losses. Moreover, the Nasdaq also suffered a hit when its debt rating was cut to "junk" status since most of the LSE purchase was funded through bond issues.

Perhaps more troubling is the fact that the Nasdaq is now far behind the NYSE in terms of expanding their global reach. While the NYSE's $12 billion deal with Euronext has not officially closed, the two exchanges are already working together to buy stakes in Japanese and Indian exchanges overseas. The Nasdaq must now attempt to unload its LSE stake while talking with other exchanges to work out a possible deal. Many are now speculating that these exchanges could include those in Hong Kong, Madrid and Italy. Another possibility being discussed is Deutsche Boerse, who is most well-known for its attempted breakup of the NYSE-Euronext deal. Regardless, these developments leave a lot for investors to watch!

Related Companies
NYSE Group, Inc. (NYX)
CBOT Holdings, Inc. (CBOT)
Chicago Merchantile Exchange Holdings (CME)