Rivals dig in heels over NYSE
By Jonathan Spicer and Jonathan Stempel |
April 12, 2011, Tuesday
|
Print Edition
Print Edition
NASDAQ OMX Group and IntercontinentalExchange responded late Sunday to NYSE Euronext's rejection of their joint proposed bid, reaffirming that their cash and stock offer is superior to the offer submitted by rival Deutsche Boerse AG.
"The feedback we have received from NYSE Euronext stockholders is very positive, and we would expect NYSE Euronext would, at the very least, meet with us and our advisors to discuss the merits of the proposed combination," Robert Greifeld, Chief Executive Officer of Nasdaq, said in the statement.
NYSE on Sunday said it was sticking with its deal with Deutsche Boerse, calling the rival offer from Nasdaq OMX Group too risky and counter to the Big Board's vision.
The NYSE board's decision smacks the ball back in the court of Nasdaq, which with partner IntercontinentalExchange Inc will have to decide whether to appeal directly to NYSE shareholders, raise the US$11.3 billion bid, or walk away.
Perhaps setting the tone for what could be a drawn-out bidding process, NYSE Euronext Chief Executive Duncan Niederauer criticized Nasdaq's unsolicited bid as hollow and undefined, saying it would carve up his transatlantic exchange operator.
"It's hard to call it an offer because it's a loosely worded proposal that was, in our minds, an empty vessel," he said.
"We had a strategy. The combination with Deutsche Boerse is consistent with that strategy. A dismantling of the company is not. End of story," added Niederauer, who would take the reins of a combined Deutsche Boerse-NYSE Euronext.
The formal rejection comes nine days after Nasdaq and ICE unveiled their plan, arguing it would strengthen the United States' hand as the world's bourses scramble to band together to fend off smaller rivals and find new profits.
On Sunday, Nasdaq said "there are significant execution and integration risks to stockholders with the proposed NYSE Euronext/Deutsche Boerse transaction," citing among other factors that the transaction faces European competition hurdles.
But NYSE Euronext's directors found the bid from Nasdaq and ICE "strategically unattractive, with unacceptable execution risk."
"The feedback we have received from NYSE Euronext stockholders is very positive, and we would expect NYSE Euronext would, at the very least, meet with us and our advisors to discuss the merits of the proposed combination," Robert Greifeld, Chief Executive Officer of Nasdaq, said in the statement.
NYSE on Sunday said it was sticking with its deal with Deutsche Boerse, calling the rival offer from Nasdaq OMX Group too risky and counter to the Big Board's vision.
The NYSE board's decision smacks the ball back in the court of Nasdaq, which with partner IntercontinentalExchange Inc will have to decide whether to appeal directly to NYSE shareholders, raise the US$11.3 billion bid, or walk away.
Perhaps setting the tone for what could be a drawn-out bidding process, NYSE Euronext Chief Executive Duncan Niederauer criticized Nasdaq's unsolicited bid as hollow and undefined, saying it would carve up his transatlantic exchange operator.
"It's hard to call it an offer because it's a loosely worded proposal that was, in our minds, an empty vessel," he said.
"We had a strategy. The combination with Deutsche Boerse is consistent with that strategy. A dismantling of the company is not. End of story," added Niederauer, who would take the reins of a combined Deutsche Boerse-NYSE Euronext.
The formal rejection comes nine days after Nasdaq and ICE unveiled their plan, arguing it would strengthen the United States' hand as the world's bourses scramble to band together to fend off smaller rivals and find new profits.
On Sunday, Nasdaq said "there are significant execution and integration risks to stockholders with the proposed NYSE Euronext/Deutsche Boerse transaction," citing among other factors that the transaction faces European competition hurdles.
But NYSE Euronext's directors found the bid from Nasdaq and ICE "strategically unattractive, with unacceptable execution risk."
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