The London Stock Exchange (LSE) forecast a big rise in third-quarter earnings as it reiterated its opposition to a £2.7-billion bid from US rival Nasdaq.
Europe's biggest stock exchange said its adjusted basic earnings per share (EPS) for the three months to December 31st would be not less than 14.5 pence, an increase of at least 48 per cent on the same period last year.
This would take EPS for the first nine months of its fiscal year to at least 38.6 pence, up 51 per cent, and EPS for the 2006 calendar year to at least 50.4 pence, or up 58 per cent.
The LSE also pledged to pay a final dividend of at least 12 pence a share, bringing the total payout for the year ending March 31st to at least 18 pence a share, or up 50 per cent on the previous financial year.
The LSE said its strong performance justified its rejection of a 1,243 pence-a-share hostile offer from Nasdaq, which already owns 28.75 pence of the London exchange.
"The board unanimously rejects Nasdaq's wholly inadequate offer as it substantially undervalues the exchange group and fails to reflect the unique strategic position and the powerful earnings and operational momentum of the business," the LSE said in a statement.
The LSE has attracted, and rejected, a succession, of takeover proposals over the past two years. But some analysts have said they believe it is running out of options as past suitors lose interest or look for alternative deals.