NASDAQ, ICE make rival bid for NYSE Euronext

NASDAQ, ICE make rival bid for NYSE Euronext


Intercontinental Exchange and NASDAQ OMX unveiled an 11.3 billion dollars bid for NYSE Euronext in an effort to trump plan of the Deutsche Boerse to acquire NYSE. The U.S lawmakers and regulators are now in dilemma because of the move whether to allow the creation of dominant American- run platform with massive market power or to allow a German exchange to take control of the venerable New York stock exchange. NASDAQ and Intercontinental Exchange said that the new offer is valued at 42.50 dollars per share. The offer represents a 19 percent premium to closing price of the NYSE on Thursday and it is 27 recent premiums to the valuation of the company before 10.2 billion dollar id of the Deutsche Boerse on the month of February. Cash and Stock will be released by the NYSE shareholders. The offer would combine the 2 largest U.S stock Exchanges and so it may raise new antitrust questions. The merged company would have locked on the derivatives of the European exchange traded and so the already seen Deutsche Boerse bid was likely to attract intense scrutiny. Some political lawmakers has provided the stirred political backlash the bid of the Deutsche Boerse and opposed the idea of a foreign company taking over an emblematic Wall Street brand.
The NASDAQ would acquire its stock exchanges and U.S option business and so the ICE would purchase many of the valuable derivatives business of NYSE under the proposal. Karl Morris an analyst at Keefe Bruyette&woods in London said that it is a bold move from ICE and NASDAQ and the premium they are paying is high enough. It is a wonder that Deutsche Boerse is going for this and it will be a struggle for them to lift their bid to match. The details of working of the deal have not yet been worked out. Robert Griefel the chief executive of NASDAQ said in a conference call that the board and the management of directors have not yet been determined. ICE and NASDAQ said that a group of banks which are led by Wells Fargo and Bank of America is prepared to arrange 3.8 billion dollars of financing for the cash portion of the deal. The shares of the Deutshe Boerse were down by 1 percent in Frankfurt and the shares of NYSE jumped about 11.6 percent to 39.26 dollars. The shares of the International Exchange slipped 4 percent to 118.62 dollars in morning trade and the shares of NASDAQ rose 1.8 percent to 26.30 dollars.

By: Teni Sow | Senior Editor at and Regular Contributor to

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