US securities exchanges Nasdaq and ICE said Tuesday they had boosted their bid to buy NYSE Euronext in a battle to top a rival offer from Deutsche Boerse and create the world's biggest exchange. The NASDAQ OMX and ICE cash-and-stock bid values NYSE Euronext at $42.67 per share, the companies said, raising their rejected initial bid of $42.50 per share.
The offer is 21 percent, or $2 billion, above Deutsche Boerse's merger proposal valued at $35.29 per share, the two US exchange operators said. The bidders also added a $350-million "reverse break-up fee" which NYSE Euronext would receive if the proposal fails to win required antitrust or competition approvals.
"The NASDAQ OMX/ICE proposal remains superior by a significant and inescapable margin," the companies said in a statement. Nasdaq and the Intercontinental Exchange made an $11.3-billion bid for NYSE Euronext on April 1. The proposed acquisition of markets in New York, Brussels, Paris, Amsterdam and Lisbon would keep Wall Street's fabled exchange under US ownership.
If the bid is successful, NYSE Euronext would be broken up, with its Liffe derivatives business going to ICE while NASDAQ OMX - best known for trading the world's leading technology firms - would take control of the stock markets in New York, Paris, Brussels, Amsterdam and Lisbon.
The bid is also a play to US nationalist sentiment, after the Deutsche Boerse move sparked complaints that the New York Stock Exchange, an icon of American capitalist might known to television viewers around the world for its hectic trading floor, would come under the control of foreigners. "Our actions today demonstrate our commitment to pursuing this transaction and further illustrate exactly how our proposal is superior. This should also eliminate any concerns that the NYSE Euronext Board has about engaging in discussions with us," Robert Greifeld, chief executive of NASDAQ OMX, said in the statement.
"It's time to allow a reasonable and expeditious diligence process to begin." Deutsche Boerse and NYSE Euronext announced February 15 that they would merge to create the world's biggest exchange by revenues and a major player in derivatives trading across two continents. While both parties emphasised a merger of equals, the combined Netherlands-incorporated firm would be owned 60 percent by existing Deutsche Boerse shareholders and 40 percent by NYSE Euronext shareholders, and the German company would dominate the new board.
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