Nasdaq Buying Philly Exchange

A source says the price is between $600 million and $700 million.
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Nasdaq Stock Market

I:IXIC

shares rose 2% on reports the exchange is close to acquiring the privately held Philadelphia Stock Exchange.

Nasdaq will pay $500 million to buy the options exchange, according to

CNBC

and

Reuters

. But sources close to the situation said the price will be between $600 million and $700 million.

Spokespeople for both exchanges declined to comment.

Nasdaq has been in discussions with the Philly exchange for several months now, with reports surfacing last week that the two exchanges were in exclusive talks.

The news comes as exchange consolidation continues at a frenzied pace. Nasdaq's crosstown rival, the New York Stock Exchange, expanded overseas this year in a deal creating

NYSE Euronext

(NYX)

.

But Nasdaq is making inroads of its own after failing to buy the London Stock Exchange in February. Just last month it agreed to acquire the Boston Stock Exchange for around $61 million.

It also agreed to purchase Nordic exchange operator OMX in May. This summer, the Dubai government offered to buy the OMX for $3.9 billion -- about 10% above what the Nasdaq and OMX agreed to this past spring.

Nasdaq and Borse Dubai ended up reaching a deal in September that will give Nasdaq control of the OMX stock exchange while giving the Dubai stock exchange a 20% stake in Nasdaq.

Under the deal, Nasdaq sold its remaining 28% stake in the London Stock Exchange to Borse Dubai as well.

Nasdaq shares rose $1.06 to close at $48.81.