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07 July 2011

NYSE Euronext holders to vote on takeover


European regulators, who set an initial deadline of August 4 to rule on the deal, are reviewing the transaction because it would unite venues that handle more than 90 percent of the region’s exchange-traded derivatives.

NYSE Euronext shareholders are scheduled to vote on the company’s $9.33 billion takeover by Deutsche Börse AG, a deal that would create the world’s largest exchange operator.

The New York-based company needs owners of half its stock to approve the plan, which was announced in February amid a wave of exchange acquisitions. The all-stock transaction would give Frankfurt-based Deutsche Börse 60 per cent of the combined entity, while NYSE Euronext chief executive officer, Duncan Niederauer, will run the organisation.

“If the vote is in their favor, it’s a nice momentum builder for the vote next week”, said Sang Lee, managing partner at Boston-based Aite Group LLC. “The next hurdle is on the Deutsche Börse side, which has a higher threshold. The most difficult part would be the regulatory restrictions and haggling with regulators to get this through”.

Press release


© Bloomberg


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