The Nasdaq Stock Market has staked a claim on the London Stock Exchange to become its biggest shareholder in a move analysts predict may presage a full takeover, triggering a fresh surge in LSE shares.
Nasdaq's purchase of nearly 15 per cent in Europe's largest share market - just two weeks after dropping its $4.18 billion offer for the LSE - puts the US exchange in prime position to gain full control of the LSE.
The move will also push rivals Euronext and Deutsche Boerse, who are under pressure from key shareholders to merge, back to the negotiating table, analysts said.
Both Euronext and Deutsche Boerse declined to comment on Nasdaq's move.
Exchanges around the world are under pressure to consolidate to boost volumes, create economies of scale that reduce trading costs and to attract more companies to list on the market.
Shares in the LSE have surged around 150 per cent over the past 12 months while it has been courted by Deutsche Boerse, Euronext, Australian bank Macquarie and US exchange Nasdaq, although it has so far rejected offers as being too low.
By 8:23am shares in the LSE - which can trace its origins back 300 years -- were up 14 per cent at 1,185-1/2 pence, above the 1,175 pence a share Nasdaq paid for its stake, reflecting the possibility that Nasdaq's arch-rival New York Stock Exchange may come back with a higher offer, dealers said.
In Frankfurt shares in Deutsche Boerse were up 3 per cent at €114.23, while in Paris shares in Euronext were up 2.5 per cent.