NEW YORK: US securities exchanges Nasdaq and ICE joined hands Friday to make an $11.3 billion bid for NYSE Euronext, putting a spoiler on a rival bid to create the world's biggest exchange.
In the latest move toward consolidating global exchanges, Nasdaq and the Intercontinental Exchange offered NYSE shareholders 19 percent more per share than a rival bid from Deutsche Boerse.
The deal would would see markets in Brussels, Paris, Amsterdam, Lisbon and New York change hands, while keeping Wall Street's fabled exchange under US ownership.
The $42.50 per share cash-and-stock bid for NYSE "represents a superior proposal to the Deutsche Boerse takeover proposal," Nasdaq and ICE said in a joint statement.
Their bid "offers greater long-term value for stockholders by putting existing businesses under managements recognized for integration capabilities and efficiency."
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 -- will take its stock markets in New York, Paris, Brussels, Amsterdam and Lisbon.
It would also play to US nationalist sentiment, as the Deutsche Boerse move sparked complaints that the NYSE big Board, an icon of American capitalist might known to television viewers around the world for its hectic trading floor, would come under control of foreigners.
"A unified US equities market would ensure that the US is better able to compete globally in a rapidly changing international market for equity trading and capital-raising," said the Nasdaq/ICE announcement.
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 emphasized a merger of equals, the new, Netherlands-incorporated firm would be owned 60 percent by existing Deutsche Boerse shareholders and 40 percent by NYSE Euronext shareholders, and the German side would dominate the new board.
Nasdaq chief executive Robert Greifeld emphasized that their deal would better benefit American investors.
"During the last five years more than 90 percent of the top 100 global listings chose not to list in the US, depriving US investors of the opportunity to easily invest and trade in these companies," he said in a statement.
"The combination of the two leading US exchanges delivers an opportunity to build a global exchange platform that has the scale and growth potential to benefit investors, issuers and other market participants." ICE chief executive Jeffrey Sprecher, chairman and chief executive officer emphasized that their takeover of the Liffe platform would create more competition in the hot business of interest rate futures.
That market, he said, is currently dominated "by one exchange with approximately 95 percent market share," a reference to Chicago's CME exchange.
In a statement NYSE said it had received the Nasdaq/ICE "unsolicited proposal" and would "carefully review" it.
Deutsche Boerse said it "continues to strongly believe that the envisaged merger of Deutsche Boerse AG and NYSE Euronext is the best possible combination for both shareholder groups and the stakeholders of the companies."
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