Nasdaq stock exchange rivals Deutsche Boerse bid for NYSE

Apr 1, 2011, 15:37 GMT

New York - Nasdaq spearheaded a rival takeover bid Friday for the iconic New York Stock Exchange (NYSE), hoping to prevent an already announced merger with Germany's Deutsche Boerse by making a more generous offer for its larger US competitor.

The rival bid for NYSE Euronext, which also controls many trading platforms in Europe, marks the latest in a string of consolidations in the global stock exchange market and would see the two largest US stock exchanges join forces.

Nasdaq OMX Group, together with US stock exchange operator Intercontinental Exchange (ICE), offered to buy NYSE Euronext for about 11.3 billion dollars, or 42.5 dollars (30 euros) per share, an improvement of about 19 per cent on Deutsche Boerse's offer.

Deutsche Boerse in February announced a more that 9-billion-dollar offer for a majority holding in NYSE Euronext, a deal that some US politicians feared could threaten New York's status as the world's premier financial capital.

'Our industry is undergoing a period of historic change,' said Nasdaq chief executive Robert Greifeld in a statement announcing the bid. '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.'

NYSE in a brief statement said it was reviewing the rival proposal and urged its shareholders not to take any steps until the review was complete. Deutsche Boerse said it still believed its merger with NYSE offered 'the best possible combination for both shareholder groups and the stakeholders of the companies.'

Either choice by NYSE is likely to face intense regulatory scrutiny. Merging with Deutsche Boerse could draw the ire of European regulators by locking up derivatives trading on the continent, while combining with Nasdaq would give the joint firm a dominant position in the United States.

Under the rival proposal, the Atlanta, Georgia-based ICE would take on NYSE Euronext's derivatives trading businesses in Europe, while Nasdaq would take the more traditional stock exchanges in New York, Paris, Brussels, Amsterdam and Lisbon.

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