The NASDAQ OMX Group, Inc. and IntercontinentalExchange (ICE) are dropping their bid for NYSE Euronext as it became clear the deal would not pass regulatory scrutiny in the US, the exchanges said in a statement this morning.
NASDAQ OMX and ICE previously bid $11.3 billion in cash and stock for NYSE Euronext, beating by 19% the offer made by Deutsche Brse for the exchange group in February.
We saw a unique opportunity to create more value for stockholders and strengthen the US as a center for capital formation amid an ongoing shift of these vital activities and jobs outside of our country, says Bob Greifeld, CEO of NASDAQ OMX. “We wish to thank our many customers and shareholders who supported our proposal and acknowledge the efforts of the Antitrust Division in expediting their review of our joint proposal.
He continues, While we are surprised and disappointed in the Antitrust Division’s conclusion, some of the uncertainty, at least as it relates to our Joint Proposal, has been resolved.”
Shares of NYSE Euronext were trading down more than 10% mid-morning in New York.
“I also want to acknowledge the consideration shown by NYSE Euronext stockholders for our joint proposal, which was undertaken with seriousness and a concern for the evolving global market structure,” says ICE Chairman and CEO Jeffrey C. Sprecher. “We will continue to seek opportunities that benefit our customers and stockholders, and that leverage our unique global market infrastructure in commodities, derivatives and clearing.”
(CG)