Nasdaq, ICE mounting hostile bid for New York Stock Exchange

May 2, 2011, 23:09 GMT

New York - Nasdaq and the commodity exchange ICE Monday mounted a formal hostile bid Monday to acquire the New York Stock Exchange (NYSE), seeking to out-duel rival suitor Deutsche Boerse.

Nasdaq, the high tech stock exchange, and IntercontinentalExchange Inc (ICE) had two previous overtures rejected by the NYSE, whose directors favour the 9.5-billion-dollar stock offer from Deutsche Boerse.

Nasdaq/ICE are offering 11.3 billion dollars, including 3.8 billion dollars in cash.

The Nasdaq/ICE bid is intended to circumvent the NYSE directors.

'The NYSE Euronext board has continually challenged the seriousness of our proposal and refused to engage us in discussion despite the positive feedback we have received from their stockholders,' Nasdaq OMX chief executive Robert Greifeld said in a statement.

'The commencement of this exchange offer should convince the NYSE Euronext board of the seriousness of our intentions.'

NYSE Euronext Chairman Jan-Michiel Hessels said last month that the Nasdaq proposal did not 'provide compelling value, has unacceptable execution risk and is therefore not in the best interests of NYSE Euronext shareholders.'

Nasdaq head Bob Greifeld disagreed, saying he has found 'positive resonance' among NYSE stockholders for his offer.

Deutsche Boerse and NYSE have tried to convince stockholders that the merger will provide savings and pump out higher profits. The NYSE board plans to present the merger for approval to a special shareholders meeting on July 7.

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