Electronic brokerage firm Instinet on Thursday turned down a bid by Third Avenue Management to buy Instinet's institutional brokerage arm, citing the more attractive prospect of its pending merger with the Nasdaq Stock Market, Reuters reports.

Third Avenue's bid for the Instinet unit came a month after Instinet agreed to be acquired by Nasdaq for $1.9 billion.

As a part of the deal, Instinet agreed to sell its brokerage arm to buyout specialist Silver Lake Partners for $207.5 million, according to Reuters. Third Avenue offered to buy the unit for $307 million.

"Nasdaq's agreement with Silver Lake does not permit Nasdaq to sell that business to a different party," Nasdaq said in a statement.

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