Truth be told, we did not think the Nasdaq would ever be able to muster up a competing bid for NYSE Euronext. But it looks like we might be wrong. The media is rife with reports that Nasdaq OMX, in cahoots with the IntercontinentalExchange, is close to making a hostile bid, which would set Wall Street afire.

As of now, the exchange has not gone public with the idea, but trial balloons are sailing. That's for sure. Some say the offer could come as early as this week.

Nasdaq OMX would finance the bid with around $5 billion in debt from four banks and $5 billion in asset sales to the ICE, which would be counted on to buy the NYSE's European assets, the Financial Times reports. Financing is being lined up with Bank of America and other banks.

It will need to make a big splash initially with an alternative that shareholders find compelling. You have to think the odds are long and that antitrust issues will crop up.

But you also have to think of the Nasdaq's Bob Greifeld, who is not afraid to go after a company in a big way. Recall his ultimately unsuccessful bid to buy the London Stock Exchange in 2006. This bid may be one to stake his entire career on. The stakes are that high for the Nasdaq. In some ways, if it does not enter the fray, it will be admitting defeat.

For more:
- here's the FT article

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