New York Stock Exchange parent NYSE Euronext, Inc. (NYX: Quote) does not intend to sell Euronext to a rival as part of its proposed acquisition by IntercontinentalExchange, Inc. (ICE: Quote), NYSE Euronext CEO Duncan Niederauer said, according to the Wall Street Journal on Wednesday.
Meanwhile, Niederauer reportedly added that the combined entity will instead spinoff Euronext through an initial public offer. The spinoff was agreed as part of the proposed $8.2 billion acquisition of NYSE Euronext by ICE in order to allay potential antitrust concerns.
The news that Euronext would be spunoff had sparked buying interests from rival browse operators, such as Nasdaq OMX Group, Inc. (NDAQ) and London Stock Exchange Group Plc (LSE.L). However, Niederauer has now cleared the air, and reportedly said that he plans to have Euronext listed separately.
ICE agreed in mid-December to acquire NYSE Euronext in cash and cash deal valued at about $8.2 billion, and planned an initial public offering of Euronext as a Continental European-based entity following the closure of the deal, if market conditions and European policy makers support the offering. The deal is expected to close in the second half of 2013, subject to shareholder and regulatory approvals.
The proposed deal will give ICE access to the NYSE Liffe derivatives market in London, providing the exchange operator with an entry point to fixed-income futures.
New York-based NYSE Euronext is the operator of the NYSE, NYSE Arca, Inc., and NYSE Amex LLC in the U.S., and five Europe-based exchanges that comprise Euronext N.V.
Meanwhile, Atlanta, Georgia-based ICE operates regulated exchanges, clearing houses, and over-the-counter or OTC markets for agricultural, credit, currency, emissions, energy, and equity index contracts.
The proposed merger comes nearly two years after ICE and Nasdaq OMX Group launched a joint hostile $11.3 billion bid for the Big Board. However, the two companies were forced to retreat in May 2011 after their takeover plan was opposed by U.S. antitrust officials.
Meanwhile, NYSE Euronext plans to merge with Germany Stock Exchange Deutsche Boerse AG (DBOEF.PK, DBOEY.PK) was also scuttled by European Union regulators in February 2012. The two exchanges mutually agreed to terminate their merger deal that was agreed upon in February 2011.
Prior to that, London Stock Exchange in February 2011 agreed to combine with Toronto-based TMX Group, Inc. (X.TO, TSX_X.TO), and in October 2010, Singapore Exchange Ltd. agreed to buy Australia-based ASX Ltd. for about A$8.4 billion. Both the deals failed to materialize.
NYX closed Wednesday's regular trading session at $33.35, down $0.10 or 0.30% on a volume of 5.98 million shares.
by RTT Staff Writer
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