The London Stock Exchange (LSE) has been left with few options to defend itself from Nasdaq after British financial markets broker ICAP's decision not to pursue fresh merger talks, analysts said today.
Nasdaq is pressing ahead with a £2.7 billion offer announced yesterday for Europe's largest share market, despite the LSE having rejected it.
Analysts say the LSE is finding itself increasingly cornered, having already rebuffed four takeover approaches from rivals Deutsche Boerse, Euronext, Australia's Macquarie Bank and a previous attempt by Nasdaq.
As Nasdaq owns roughly 29 per cent of the exchange it would be difficult for a third party to re-enter the race.
Earlier Michael Spencer, the chief executive of ICAP, the world's biggest inter-dealer broker, said the company had no plans to re-engage in talks with the LSE.
ICAP had held talks over a possible combination earlier this year.