Nasdaq buys 15% share of LSEU.S. market becomes biggest shareholder for $782 millionE-mail | Print | | Disable live quotes By David Weidner, MarketWatchLast Update: 6:56 PM ET Apr 11, 2006NEW YORK (MarketWatch) -- The Nasdaq Stock Market Inc., rebuffed last month in an effort to buy the London Stock Exchange with a $4.2 billion bid, said Tuesday that it has acquired the shares of the British market's single biggest shareholder.Nasdaq (NDAQ : nasdaq stock market inc comNews , chart, profile, moreLast: 40.85-0.52-1.26%12:15am 04/12/2006Delayed quote data Add to portfolioAnalyst Create alertInsiderDiscussFinancials Sponsored by:NDAQ40.85, -0.52, -1.3%) took over the 14.99% stake in the LSE (UK:LSE: news, chart, profile) by buying the complete holdings of Threadneedle Investments for 1,175 pence a share, or $781.7 million. 'This purchase leaves Nasdaq well positioned should it choose to increase its holdings and eventually secure a controlling interest in the LSE.'Harrell Smith, CelentThe disclosure of Nasdaq's new ownership position, announced after European markets closed for the day, is certain to put pressure on the LSE, which has been waiting out bids by competitors for years in hopes for pushing up the premium. Europe's largest stock exchange is seen as the prime target in a consolidating industry. "By taking such a large stake in the LSE, Nasdaq will gain a foothold in Europe and will be able to exert considerable influence on the future growth strategies of the LSE," Harrell Smith, a market analyst with the consulting firm Celent, wrote in a note to clients. "This purchase leaves Nasdaq well positioned should it choose to increase its holdings and eventually secure a controlling interest in the LSE." In London, LSE shares climbed 1%, to 1,038.50. Shares of the Nasdaq closed down 52 cents at $40.85. Nasdaq's price paid for the Threadneedle stake implies an overall market value of $5.2 billion for the London exchange. On March 10, the LSE rejected Nasdaq's bid of 950 pence a share, saying it undervalued the exchange. Nasdaq withdrew its bid later in the month. See related story. A Nasdaq representative declined to offer further comment. But in March the company said "bringing together the two organizations would present listed companies, traders and investors with an equity marketplace, based on dynamic industry leadership, to serve their needs unmatched by any other marketplace in the world." Analysts have speculated that the NYSE Group Inc. (NYX : nyse group inc comNews , chart, profile, moreLast: 73.12-2.93-3.85%12:06am 04/12/2006Delayed quote data Add to portfolioAnalyst Create alertInsiderDiscussFinancials Sponsored by:NYX73.12, -2.93, -3.9%) also has been preparing an offer for the LSE. The Big Board and the Nasdaq seek a European market for foreign companies that cannot meet U.S. listing requirements. European exchanges such as the Deutsche Boerse, the LSE and the Paris-based Euronext pan-European exchange are considered choice targets for the bulked-up U.S. markets, which long to capture more listings and the trading volume they would bring. Nevertheless, the European exchanges in Frankfurt and Paris haven't ceded the field and could make new bids for the London market. The London exchange has been a target of exchanges and institutions seeking a bigger share of the world's equity markets. The Deutsche Boerse dropped a bid last year, and Australia's Macquarie Bank Ltd. rescinded a $2.63 billion bid in February. In the heat of Macquarie's battle for the LSE, the exchange said last month that it would double a special payout, valued at $880 million, to shareholders if the exchange remains independent. The Nasdaq is being advised in its pursuit of the LSE by Greenhill & CoI would never die for my believes, because I might be wrong