Nasdaq Stock Market, Inc. (NDAQ:NDAQ) stepped up their efforts to acquire the London Stock Exchange (LSE) by foregoing an unresponsive board and taking their case directly to shareholders. The Nasdaq said that their $5.2 billion offer not only represented a fair price, but also argued that such an acquisition was necessary both companies in order to effectively compete with NYSE/EuroNext's transatlantic exchange.

Nasdaq also increased the pressure on shareholders and the board by noting that they could unload their entire 29% stake in the company without suffering a loss. Such actions would put heavy pressure on LSE shares, likely bringing them down to 1,100 pence or lower. Alternatively, they noted that there is significant overlap between NDAQ customers and LSE customers, which means they could choose to compete directly with the exchange if the offer falls through. Combined, these factors put significant pressure on LSE's board to act in favor of the deal, or face heavy shareholder criticism.

Nasdaq shares moved up $0.65 or 2% to $33.75 in mid-day trading on the news.

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