Nasdaq's chief executive will today begin a series of meetings with top London Stock Exchange shareholders as he seeks to win support for a $4.2 billion takeover, sources close to the situation said.
Robert Greifeld and senior management of the New York-based exchange are in London to meet major LSE investors such as Threadneedle Investments and Scottish Widows who have both expressed an interest in talks.
Nasdaq, which declined to comment, last week approached the LSE with a 950-pence-a-share offer but the London exchange has rejected the bid as too low.
But Threadneedle, the LSE's biggest shareholder with a stake of about 14 per cent, and Scottish Widows, which owns 7.3 per cent, have both said the offer is closer to a fair takeout value for the exchange operator than previous bids.
Nasdaq has made it clear it will consider raising its offer but will only do so after talks with shareholders. Analysts have also said the New York exchange could raise its bid and an acquisition would still add to its 2007 earnings.
Threadneedle last month helped the LSE fend off a hostile 580-pence-a-share bid by Australia's Macquarie Bank by buying stock in the market at more than 600 pence a share.
A tie-up between the LSE and Nasdaq would create the first major trans-Atlantic stock exchange and encourage further deals among exchanges that are under pressure to cut costs and fees.
Deutsche Bourse said yesterday it wanted concrete merger talks with Euronext to create Europe's largest cash trading market, surpassing the LSE, and the world's largest derivatives market.