NYSE Euronext expects bigger savings
NYSE Euronext sees cost savings in its US$9.8 billion deal with Deutsche Boerse at closer to 400 million euros (US$583 million), up about a third from its initial estimate, according to a Big Board spokesman on Sunday.
NYSE Chief Executive Duncan Niederauer also sees the biggest NYSE and Deutsche Boerse customers saving at least US$3 billion from the combination of their European derivatives platforms, according to spokesman Richard Adamonis.
Adamonis was confirming comments made earlier by Niederauer in an interview with the Financial Times.
The new savings estimate, along with a 100 million euros in benefits coming from cross-selling and distribution opportunities, would bring the total savings and benefits from the deal to about US$725 million, closer to the estimates from a competing takeover offer.
Nasdaq OMX Group Inc and IntercontinentalExchange Inc have launched a rival US$11.2 billion takeover bid for NYSE Euronext. That deal promises net savings and benefits, or synergies, of US$740 million.
Last week, NYSE's board rejected the Nasdaq/ICE bid for the second time in 11 days.
US Senator Charles Schumer of New York was expected to ask Nasdaq and ICE about potential job losses if they succeeded in their bid, the Wall Street Journal reported on Sunday.
In a letter expected to be sent late yesterday, Schumer cited estimates by NYSE that a merger with Nasdaq could cost 1,000 US jobs, or about a third of the US-based employees of the combined company, the Journal reported.
The estimates are based on NYSE's research from about 12 to 18 months ago when it looked at buying Nasdaq, the paper reported, citing an unnamed source.
Earlier, Schumer said he was concerned about the impact on jobs in New York.
The US lawmaker is one of the key political figures whose support could be crucial for any deal involving NYSE.
NYSE Chief Executive Duncan Niederauer also sees the biggest NYSE and Deutsche Boerse customers saving at least US$3 billion from the combination of their European derivatives platforms, according to spokesman Richard Adamonis.
Adamonis was confirming comments made earlier by Niederauer in an interview with the Financial Times.
The new savings estimate, along with a 100 million euros in benefits coming from cross-selling and distribution opportunities, would bring the total savings and benefits from the deal to about US$725 million, closer to the estimates from a competing takeover offer.
Nasdaq OMX Group Inc and IntercontinentalExchange Inc have launched a rival US$11.2 billion takeover bid for NYSE Euronext. That deal promises net savings and benefits, or synergies, of US$740 million.
Last week, NYSE's board rejected the Nasdaq/ICE bid for the second time in 11 days.
US Senator Charles Schumer of New York was expected to ask Nasdaq and ICE about potential job losses if they succeeded in their bid, the Wall Street Journal reported on Sunday.
In a letter expected to be sent late yesterday, Schumer cited estimates by NYSE that a merger with Nasdaq could cost 1,000 US jobs, or about a third of the US-based employees of the combined company, the Journal reported.
The estimates are based on NYSE's research from about 12 to 18 months ago when it looked at buying Nasdaq, the paper reported, citing an unnamed source.
Earlier, Schumer said he was concerned about the impact on jobs in New York.
The US lawmaker is one of the key political figures whose support could be crucial for any deal involving NYSE.
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