Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date.
What Happened?
On this day in 2000, Swedish company OM Group made a $1.2-billion hostile takeover bid for the London Stock Exchange.
Where The Market Was
The Dow Jones Industrial Average closed at 11,215.10 and the S&P 500 traded at 1,509.84.
What Else Was Going On In The World?
In 2000, Microsoft Corporation (NASDAQ:MSFT) released Windows 2000. AOL merged with Time Warner. The average cost of a new car was $24,750.
Swedes Take A Shot At LSE
After 227 years in operation, the LSE was taken by surprise in August 2000 when OM Group made a hostile takeover bid. The LSE board repeatedly criticized the $1.2-billion offer as “inadequate,” prompting OM Group to eventually raise its bid to around $1.46 billion.
The LSE still opposed the takeover bid, and OM Group was denied after receiving just 6.7% LSE shareholder approval for its buyout in a November vote.
Seven years later, Nasdaq Inc (NASDAQ:NDAQ) would step up with its own $5.3-billion bid to buy the LSE. Despite controlling 28.75% of voting shares at the time, Nasdaq received the approval of just 0.4% of remaining shareholders and the LSE once again remained independent.
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Public domain photo via Wikimedia.
