24 August 2017
Find out more

Deutsche Börse revamps Euronext bid; Nyse eyes London

20 June 2006  |  5717 views  |  0 Deutsche Boerse web screen shot

In a new attempt to woo Euronext away from its planned merger with the New York Stock Exchange, Germany's Deutsche Börse has modified its own proposed offer for the pan-European exchange which includes key concessions on technology and operations. The move follows news that Nyse could establish a UK market to rival the London Stock Exchange following its merger with Euronext.

Deutsche Börse says it has made structural changes to its proposed offer, but financial terms remain unchanged, although it claims that recent movements in share prices now make its offer more valuable than the Nyse bid.

The latest proposal includes key concessions, including the integration of Deutsche Börse's IT division Euronext's existing technology joint venture with Atos. The Börse says the combined division would act as a service provider to the organisation and would operate from hubs in Frankfurt and Paris.

The Börse says it would also streamline the group's trading infrastructure by adopting Euronext's NSC technology for cash equity trading and Eurex as the combined derivatives trading platform.

Furthermore, the Börse has also agreed that following a merger only German equities would be cleared via its Eurex subsidiary, while Euronext's clearing services would continue to be provided by LCH.Clearnet.

The re-vamped offer also proposes a new Dutch company to own the merged group, with regulation of the Euronext exchanges to remain as it is now. The board will consist of an equal number of representatives from both companies and divisional management of the merged group would be split so that information services were run out of Amsterdam, equities from Paris and derivatives from London and Frankfurt.

Euronext accepted a $10bn merger offer from Nyse earlier this month, although the deal still needs shareholder approval.

The pan-European exchange has not made any comment on Deutsche Börse's revised bid, but it is thought that it will continue to favour a merger with Nyse despite growing political pressure for it to consider a tie-up with a European partner. French president Jacques Chirac, Italian prime minister Romano Prodi and the European Central Bank president Jean-Claude Trichet have all come out in favour of a European tie-up rather than an transatlantic partnership.

Nyse chief executive John Thain has told reporters that that Deutsche Börse's revamped offer was not much different from a previous one and he saw no reason to change Nyse's merger agreement with Euronext.

In an interview with the Financial Times, Thain has also raised the prospect of Nyse starting up a London operation to compete with the LSE if a merger with Euronext did not attract enough international listings.

Thain also said Nyse could acquire the LSE if the proposed Euronext merger failed to meet business expectations.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Deutsche Börse to offer Euronext concessions on technology

Deutsche Börse to offer Euronext concessions on technology

14 June 2006  |  5904 views  |  0 comments
Nyse clinches Euronext deal

Nyse clinches Euronext deal

02 June 2006  |  9025 views  |  0 comments
Nyse launches $10.2bn bid for Euronext

Nyse launches $10.2bn bid for Euronext

22 May 2006  |  5916 views  |  0 comments
Nasdaq raises LSE stake to 25.1%

Nasdaq raises LSE stake to 25.1%

19 May 2006  |  9449 views  |  0 comments
Nasdaq increases LSE shareholding to 24.1%

Nasdaq increases LSE shareholding to 24.1%

10 May 2006  |  8141 views  |  0 comments
Nasdaq raises LSE stake

Nasdaq raises LSE stake

03 May 2006  |  8076 views  |  0 comments
Nasdaq acquires key stake in LSE

Nasdaq acquires key stake in LSE

12 April 2006  |  7474 views  |  0 comments
Nasdaq drops LSE takeover bid

Nasdaq drops LSE takeover bid

30 March 2006  |  7165 views  |  0 comments
Euronext reignites merger talks with Deutsche Börse

Euronext reignites merger talks with Deutsche Börse

14 March 2006  |  7905 views  |  0 comments
London Stock Exchange rejects Nasdaq takeover bid

London Stock Exchange rejects Nasdaq takeover bid

10 March 2006  |  11135 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.vasco.comvisit www.worldpaymentsreport.comdownload the paper now

Top topics

Most viewed Most shared
Rabobank constructs physical model to understand IT architectureRabobank constructs physical model to unde...
21537 views comments | 45 tweets | 89 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
12119 views comments | 22 tweets | 35 linkedin
Australia regulates digital currenciesAustralia regulates digital currencies
11556 views comments | 21 tweets | 35 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
11307 views comments | 10 tweets | 8 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
10926 views 0 | 7 tweets | 1 linkedin