The London Stock Exchange (LSE) has rejected a 2.7 billion-pound takeover offer from New York-based Nasdaq, which is already holding 25.3 percent of the British company.

The offer, which is said to be at 1,243p a share, " substantially undervalues" the company, the LSE said in a statement.

Speculation about a bid had sent the LSE's shares soaring by as much as 124 percent this year.

Shares in the LSE fell seven percent from more than 13 pound a share to 1,218p last week as the market digested news that seven of the world's leading investment banks, including Citigroup In, Credit Suisse Group, Goldman Sach and Morgan Stanley were looking at setting up a rival pan-European platform.

"We are excited about the prospect of combining two strong businesses to form the leading global, cross-border equity market platform," said Nasdaq president and chief executive Robert Greifeld.

LSE, which claims to be one of the oldest stock exchanges in the world, listed on its own main market in July 2001.

Source: Xinhua