Euronext and NYSE Group say that they are willing to start talks with Deutsche Borse and Borsa Italiana over a possible four-way tie-in. This follows Deutsche Borse request to the European Commission to approve its USD 12.2 billion, bid for Euronext. However, Euronext has already accepted an offer from NYSE.
NYSE and Deutsche Borse have both been trying to aquire Euronext for much of 2006. Euronext and NYSE have stated their view that European exchanges should merge their businesses.
In June Euronext rejected Deutsche Borse’s bid in favor of an offer from NYSE. Deutsche Borse now aims to create a pan-European exchange, that will include Borsa Italiana.
Deutsche Borse has notified the commission which sets in motion a five-week review of its bid. The commission are able to block or force changes to mergers between companies that have combined global sales of USD 5 billion and sales of USD 250 million each.
“Deutsche Borse does not consider contributing its cash equities activities into a NYSE/Euronext group an option,” says a spokesman for Deutsche Borse. “Deutsche Borse continues to welcome the efforts made by the working group lead by Henri Lachmann towards a European exchange organisation. As documented by the Letter of Intent between Deutsche Borse and Borsa Italiana, Deutsche Borse is actively pursuing the creation of a federal European exchange that includes Euronext.”
Deutsche Borse says that they would welcome if further concerned stakeholders would support Lachmann in his objective to achieve a European solution.
“Euronext and NYSE continue to believe such that a cash equity combination delivers the maximum benefits to investors, issuers and all stakeholders with minimum execution risk,” says a joint spokesman for NYSE and Euronext. “This combination would be advantageous to Europe while leveraging transatlantic synergies. Euronext and NYSE re-confirm their willingness to begin immediately discussions with Euronext and NYSE continue to believe such that a cash equity combination delivers the maximum benefits to investors, issuers and all stakeholders with minimum execution risk.”