NASDAQ OMX Group recently talked with private equity firm Carlyle Group about taking the trans-Atlantic exchange operator private, but the talks broke down because of price disagreements, according to people familiar with the matter.
Carlyle initiated the discussions around three weeks ago and was in early stages of due diligence when differences emerged, ending talks.
Management at Nasdaq feels that the company is undervalued compared with its peers, two separate sources said. Both firms declined to comment yesterday.
Nasdaq itself has been active on the acquisition front, most recently proposing to buy Thomson Reuters’ investor relations, public relations and multimedia services units. Nasdaq chief executive Bob Greifeld also recently said he would consider bidding for Euronext, the operator of the Paris, Amsterdam, Brussels and Lisbon stock exchanges, if it were put up for sale.
Exchanges have been under pressure due to several years of declining trading volumes amid macro-economic uncertainty and long periods of low market volatility. However Nasdaq has placed an emphasis on diversifying away from transaction-based revenues.
City A.M. Reporter