Nasdaq to Acquire Control of Easdaq

The Nasdaq Stock Market said Tuesday it will spend $63 million to acquire control of Easdaq, a small European securities bourse that specializes in initial public offerings, as part of the U.S. market’s plan to provide 24-hour global trading.

Nasdaq, the second-largest U.S. stock market, earlier had sought a foothold in Europe by trying to form a joint venture with two of Europe’s three largest markets, the London Stock Exchange and Deutsche Boerse.

This effort failed when merger talks between the two European giants collapsed.

Nasdaq has been looking for an entrance to Europe in Chairman Frank Zarb’s effort to form a worldwide market.

Some European traders were skeptical about Tuesday’s agreement with Easdaq, where listed shares have less than 1% of the value of companies on the London Stock Exchange.

Brussels-based Easdaq, which is to be renamed Nasdaq Europe, will target emerging European companies that want to make initial public offerings, Easdaq Vice Chairman Ronald Cohen said. It is to be linked to Nasdaq in the U.S. as well as Nasdaq Japan.

Under Tuesday’s agreement, which is to be voted on by Easdaq shareholders this weekend, Nasdaq will acquire 58% of Easdaq, Zarb said.

This stake will fall to 51% after outstanding warrants are exercised and new Easdaq shares are sold, he said.

Easdaq has attracted about 60 listings since it was formed in 1996.