Nasdaq is selling its LSE stake after a failed takeover bid

Nasdaq recently announced its plans to sell its �797m ($1.58bn) stake in the LSE. Nasdaq had tried and failed to take over the firm six months earlier.

Temasek, the investment arm of Singapore's government and Deutsche Borse are both said to be interested.

Analysts believe Nasdaq's sale could place the LSE under takeover pressure.

Consolidation

Weekend reports said Nasdaq was looking to sell between half and close to all of its 31% stake in the London exchange.

If a large stake were to be sold to a single investor, this could lead longer term to the LSE being bought outright, say analysts.

According to the Sunday Times, Temasek made an approach recently for the LSE stake, offering �800m.

The Financial Mail meanwhile said JP Morgan, acting as Nasdaq's advisers, has been approached by Deutsche Borse, Borse Dubai as well as Temasek.

The LSE, which is mainly focused on listing shares of UK and international companies, recently gained shareholder support to buy Borsa Italiana.

The step was seen as a way for the exchange to prevent being acquired, amid increasing consolidation in the sector.

Nasdaq's decision to sell its LSE stake comes as it battles it out with Borse Dubai to buy Swedish exchange OMX.

Since last year, exchanges have been trying to make acquisitions, in an attempt to cut costs and become more efficient.