What problems? Nasdaq lures Kraft away
The move is expected to save costs as Kraft prepares to spin off into two companies.
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.
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