NASDAQ's Bid for LSE

The Nasdaq's bid for majority control of the London Stock Exchange has journalists trying to figure out the takeover code in London.  Nasdaq cannot raise its bid unless the LSE agrees or another bidder shows up; the bid must be held open tuntil Jan. 11; Nasdaq can lower "terms" until Jan. 27 and extend the offer until Feb. 10.  If the offer fails, Nasdaq must wait one year to make another offer.  All these rules, and many others in the background(if Nasdaq gets 90% control,it can cash out the remaining 10%), make any open auction negotiation with target shareholders very difficult.  The Nasdaq bid is a case study in whether the rules make sense.