Monday 4 July 2011

NASDAQ outweighs Deutsche Boerse with NYSE 11 $5.3 submission

NYSE said it would "consider carefully" the offer, while Deutsche Boerse insisted on the fact that its offer remains the "best possible combination for both groups of shareholders."

Bob Greifeld, Nasdaq Executive Chief, was quick to trumpet the potential benefits of the American economy of the plan, saying that the deal would "strengthen the international competitive position of the United States in an era where businesses and investors are more sucked in other financial centres".


Although so far there has been little of the outcry to supply Deutsche Boerse tabled in February, the emergence of a rival that we offer may change this, analysts suggested. "The transaction is also likely to attract a high degree of political control," according to Moodys.


The strike by Nasdaq, which is home to America as the Apple large technology companies, is the latest in a series of takeover proposals as trade combine to take advantage of the application of emerging financial centresas well as reduce costs.


The wave of consolidation was launched in October when Singapore Exchange bought main change Australia, ASX, 1.3 $8 in October.


So far this year planned anchors were all transatlantic with the LSE accepting a $3 billion deal for the TMX Canada, the owner of the Toronto Stock Exchange. The London Stock Exchange is still pending to the Canadian authorities to approve the agreement.


NYSE said it would "consider carefully" the offer, while Deutsche Boerse insisted on the fact that its offer remains the "best possible combination for both groups of shareholders."


Under the proposal of the Nasdaq and ice, which runs futures exchanges in the United States and Europe, Nasdaq could get NYSE Euronext stock exchanges in New York, Paris, Amsterdam, Brussels and Lisbon. ICE, during this time, which is based in Atlanta, Georgia, would ensure future of NYSE Euronext, including the London Liffe Exchange.


Analysts were divided on whether Deutsche Boerse would return with a higher offer. "It is quite a bold initiative of the Nasdaq and the ice," said Karl Morris, who follows the industry at Keefe, Bruyette & Woods in London. "It makes you wonder what is going to do that and I struggle to see how they can raise their game to bid for Deutsche Boerse.".


Submission of Friday would see NYSE Euronext owners receive $14.24 cash, 0.4069 of a Nasdaq share and 0.1436 ice cream to NYSE Euronext share they own.


The bid is boost for banks on Wall Street and the shops involved. Bank of America, Merrill Lynch and advised Evercore Nasdaq, while Lazard was hired by ICE.


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