Nyse Euronext (NYX) today announced plans to repurchase up to $100 million in Nyse Euronext common stock at the discretion of management in open market or privately negotiated transactions or otherwise, subject to applicable United States and European laws, regulations and approvals, strategic considerations, market conditions and other factors.
In conjunction with NYSE Euronext's announced plan, Deutsche Boerse has also announced a buy-back plan of around EUR 100 million. NYSE Euronext and Deutsche Boerse have agreed to coordinate their respective share buyback programs in order to preserve the ownership percentages of 40% and 60% to be held by former NYSE Euronext and Deutsche Boerse shareholders, respectively, in the combined company following the pending business combination.
It is anticipated that the NYSE Euronext repurchase plan will commence after the release of third quarter 2011 earnings on November 3, 2011 and will be completed in the fourth quarter of 2011. The $100 million buy-back is being executed under a $1.0 billion Board authorization issued in March of 2008 and suspended in the fourth quarter of 2008. Before the suspension of the plan, a total of $350 million of the $1.0 billion authorized amount was utilized.
"At current trading levels, we do not feel that the underlying strength of our franchise, strong free cash flow generation and the compelling nature of our upcoming merger with Deutsche Boerse are properly reflected in our share price," Michael S. Geltzeiler, Group Executive Vice President and CFO, NYSE Euronext, commented. "Given our focus on shareholder value, we are re-commencing a limited stock buy-back program, on top of the already attractive stream of dividends that we expect to pay out to investors in conjunction with our merger."
Any such repurchases will be made in compliance with the applicable provisions of Rules 10b-5 and 10b-18 and Regulation M of the Securities Exchange Act of 1934, as amended, and any other applicable laws and regulations, including any applicable European laws and regulations, including regulations of the Autorité des Marchés Financiers.