Nasdaq OMX Group Chief Executive Robert Greifeld dampened speculation that his exchange would jump back into the global merger frenzy, cautioning on Wednesday that it could be tough to extract value from such an investment. On a public conference call discussing Nasdaq's better-than-expected quarterly earnings, the CEO went out of his way to address the merger buzz that's been heard since the company's bid for rival NYSE Euronext failed in May, leaving it partnerless in an industry looking to consolidate.
"With our valuation today, those type of external opportunities are that much more difficult to show incremental value above and beyond some capital return to shareholders, or investments in internal growth opportunities," said Greifeld, a cost-cutter and a dealmaker since he took Nasdaq's reins in 2003.
London Stock Exchange Group Plc, also stung by a failed merger plan this year, is front and centre in the Nasdaq merger speculation and seen as a good possible fit. The CEO later told Reuters that the $11 billion NYSE bid, which was rejected by US antitrust regulators, did not sow any extra caution as he looks at other possible deals. Nasdaq teamed with IntercontinentalExchange Inc in the bid. Shares of Nasdaq, which runs US and Nordic European trading venues, were down 3 percent at $23.55. The results included $29 million in costs related to Nasdaq's failed NYSE bid. Excluding that, Nasdaq earned $112 million, or 62 cents per share, up from $108 million, or 52 cents, a year ago. Revenue grew 7 percent to $416 million.