What problems? Nasdaq lures Kraft away

The move is expected to save costs as Kraft prepares to spin off into two companies.

By Benzinga Jun 8, 2012 6:41PM
By Matthew Kanterman, Benzinga staff writer

With all of the negative media surrounding the botched Facebook (FB) IPO, investors may be forgetting that the Nasdaq (NDAQ) is still a strong franchise and is still attracting new listings. Nasdaq came under fire after trading glitches marred Facebook's first day of trading.


Nasdaq CEO Bob Greifeld stated on CNBC recently that the company's backlog of IPOs has actually grown since Facebook went public. And now it has another feather in its cap: Kraft (KFT) is planning to delist from the New York Stock Exchange (NYX) and relist on the Nasdaq.


Kraft shareholders recently approved a plan to split the company in two. One company, Mondelez International, will get the faster-growing global snacks business and trade under the ticker MDLZ. The other business, the North American grocery business, will trade under KRFT, and the KFT ticker will be retired.


Nasdaq's pipeline of forthcoming IPOs remains strong, according to Greifeld. The Nasdaq has been a hub of technology IPOs over the last few decades, and one bad IPO may not derail that. The sheer size of Facebook's offering and the extremely high expectations put pressure on the Nasdaq's systems. 


Nasdaq announced that it will set aside $100 million to compensate those that had trading glitches, but some, including Knight Capital CEO Tom Joyce, say that this number is not clearly enough.


The NYSE and the Nasdaq have been fighting for listings for years, and this is just the latest example of a large company jumping ship. TD Ameritrade (AMTD) recently went the other direction, jumping from the Nasdaq to the NYSE.


More from Benzinga
0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

114
114 rated 1
278
278 rated 2
474
474 rated 3
641
641 rated 4
639
639 rated 5
663
663 rated 6
640
640 rated 7
499
499 rated 8
284
284 rated 9
122
122 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
DYNDYNEGY Inc10
TAT&T Inc9
VZVERIZON COMMUNICATIONS9
EXCEXELON CORPORATION8
AAPLAPPLE Inc10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.