Nasdaq Stock Market Inc. (NDAQ:NDAQ) shares moved down $0.13, or 0.38%, to $33.94 today after the company said that they have not been contacted by the London Stock Exchange and do not have enough time to revise its $5.3 billion offer, which is due to expire on Saturday. Even after the Nasdaq threatened to sell off its nearly 30% stake in the exchange, the LSE still maintained that it was worth more than $5.3 billion even on a standalone basis. Meanwhile, LSE shareholders remain unconcerned as the stock trades at roughly even, retaining the buyout premium.

While the exchange has the ability to extend the offer until February 11th, it is more likely that they will simply attempt to gain control of the LSE by continuing to purchase shares. The Nasdaq currently owns approximately 30% of the company, while several hedge funds have also upped their stake. These hedge funds are hoping to accumulate a stake that they could later sell to the Nasdaq at a premium to help them quickly obtain a controlling stake. Among them is U.S. corporate raider Samuel Heyman who recently announced a 10.44% stake in the LSE.

If the Nasdaq is able to successfully acquire the LSE, it would create a trans-Atlantic exchange comprising over 6,400 companies with a total market capitalization of $11.8 trillion. Meanwhile, NYSE Group, Inc. (NYSE:NYX) has already agreed to a merger with Euronext and said it was working towards and agreement with the Tokyo Stock Exchange. Given the NYSE's successful transition abroad, it is becoming increasingly critical for the Nasdaq to establish itself. This situation is definitely one worth watching...

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