London Stock Exchange on Tuesday urged its shareholders to reject a hostile takeover bid by the Nasdaq Stock Market Inc., saying the offer was "wholly inadequate."
New York-based Nasdaq has given LSE shareholders until Jan. 11 to accept its offer, which values the London exchange at 2.7 billion pounds ($5.3 billion).
The LSE board has already formally rejected the bid.
"For the second time this year, Nasdaq is offering a wholly inadequate price for the company and shareholders should reject the offer," LSE Chairman Chris Gibson-Smith said in a letter to shareholders.
Nasdaq offered 1243 pence ($24.26) a share, below Monday's closing price of 1317 pence.
"The board highlights that Nasdaq's final offer is the lowest price Nasdaq can currently offer under the Takeover Code," the letter said.
The exchange urged investors to hold on to their shares.
In the last 12 months, the amount of money raised as well as the volume and value of trading has surged, Gibson-Smith said.
"This is further confirmation of the significant progress we are making towards the realization of our vision to be the world's capital market."