Reuters is reporting that Nasdaq has dropped its £2.4 billion offer for the London Stock Exchange.

“But the second-biggest U.S. stock exchange operator left the door open to a tie-up in the future, saying it might make an offer under certain circumstances, such as if the London Stock Exchange (LSE) agreed to a deal, or a rival bidder emerged.

“LSE shares fell 6.8 percent to 1,023 pence in London, valuing the exchange at around 2.6 billion pounds ($4.50 billion). But they remained well above Nasdaq’s cash offer proposal of 950p as industry observers continued to believe the London exchange may eventually succumb to a bid, or take a more active role in the industry’s consolidation.

“LSE shares have soared to as high as 1,219-1/2p since Nasdaq’s approach was unveiled on hopes Nasdaq might improve its proposal, or that a rival suitor, such as the NYSE Group, might enter the fray.

“Industry observers thought the NYSE would be in no rush to make any bid for the LSE, as it is tied up with a secondary share offering, integrating its recent acquisition of trading platform Archipelago and introducing its “hybrid” market, which will bring more automation onto the floor.”