In the end, the NSYE successfully bet that the Justice Department would never allow a NYSE-Nasdaq combination. It seems like yet another massive blow to the Nasdaq OMX, a big strategic mistake.

Recall that the Nasdaq's efforts to buy the London Stock Exchange ended in defeat as well. But can you blame the company for trying its failed hostile offer gambit?

For one thing, it had everything to gain by undertaking the hostile bid, which was its best bet to generate outrage on the part of NYSE Euronext shareholders. It was partially successful on that score. For another thing, Nasdaq had the nationalism argument on its side, though that never really developed into anything really persuasive.

Perhaps most importantly, despite losing out, the firm has signaled to the world that it is serious about remaining a global powerhouse. Once again, talk about a possible deal with the London Stock Exchange and other overseas companies has heated. Domestically, there may be opportunities as well. The talk is fast and furious right now. BATS and Direct Edge are mentioned almost obligatorily.

The downside is that the firm might have developed a bit of a credibility problem regarding mergers and acquisitions. It has yet to seal a deal, though the imperative to merge has grown exponentially, as the Deutsche Bourse-NYSE Euronext deal looms as likely.

For more:
- here's a Financial Times article

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