Just how hostile is this going to get. Recall that the London Stock Exchange rebuffed the Nasdaq earlier this year, saying its bid was too low. Nasdaq then built up an ominous 25 percent stake in the exchange. All prelude to its $5.1 billion bid that hit the news this week, an offer with a premium of 54 percent. Well, the LSE has once again said no, arguing the offer was too low, leaving the ball in the Nasdaq's court. It's unclear if the Nasdaq aims to up its bid. It says it will if it gets some signal from the target. Its 25 percent stake gives it a certain amount of leverage. One wild card for the Nasdaq is that the political climate in Europe right now is not conducive to a U.S. takeover. It would not go over well. The mere thought of a U.S. owner has given some pause. Sarbanes-Oxley only has a little to do with it.

For more:
- Here's an update from The Washington Post (sub. req.)