NASDAQ TO OFFER $100M IN SHARES
By PAUL THARP
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December 15, 2004 -- The Nasdaq is jumping into the gold rush to sell shares of itself to the public, getting a head start over its rival, the New York Stock Exchange.
The Nasdaq Stock Market intends to start selling about $100 million of shares on its own exchange, and give up its currently limited trading role of selling shares in the penny-stock world of the over-the-counter Bulletin Board.
The Nasdaq shares, although thinly traded, shot up 23 percent yesterday to $8.34, up $1.54, on its announcement to get a higher-profile listing to boost trading.
All the major stock exchanges are in a race to go public and cash in the way the Chicago Mercantile Exchange did earlier this year when it went public. Its shares have skyrocketed nearly 231 percent to $223.99.
None of the proceeds from the Nasdaq sale would go to the exchange or its employees. The selling shareholders are its affiliate, the NASD, and other private investors who bought stakes in 2000-2001.
The two largest Nasdaq shareholders are NASD and private investment fund Hellman & Friedman Capital Partners IV, which isn't selling its shares. Japan's Softbank Corp. is also holding on to its Nasdaq shares.
Separately, Wall Street sources said the Nasdaq is in talks to acquire a competing all-electronic exchange, the Archipelago Exchange (ArcaEx) of Chicago, which had no comment on the reports. Acquiring Archipelago would give the Nasdaq broader market share and boost its value, sources said. |
