NYSE rejects takeover bid from Nasdaq



NEW YORK (CNNMoney) -- The parent company of the New York Stock Exchange said Sunday that its board has rejected a takeover offer from the owner of Nasdaq and another rival exchange.

NYSE Euronext (NYX, Fortune 500) said it has reaffirmed a deal to merge with Germany's Deutsche Boerse. The two exchanges announced that merger, worth $10 billion, in February.

But earlier this month, Nasdaq OMX (NDAQ) and IntercontinentalExchange (ICE), more commonly referred to as ICE, unveiled an unsolicited offer to buy NYSE Euronext for $11.3 billion. That deal would have split the NYSE, with Nasdaq purchasing the stock and options exchanges and ICE acquiring the NYSE's derivatives business.

In a statement, NYSE Euronext chairman Jan-Michiel Hessels said that "breaking up NYSE Euronext, burdening the pieces with high levels of debt, and destroying its invaluable human capital, would be a strategic mistake in terms of where the global markets are going."

As part of the NYSE's deal with Deutsche Boerse, the new combined company would be 60% owned by Deutsche Boerse shareholders, with existing NYSE Euronext shareholders owning the remainder.

The two firms agreed to create a new Dutch holding company that will have headquarters in both New York and Frankfurt.

But the battle for the NYSE is far from over.

Nasdaq OMX and ICE denounced NYSE Euronext's decision, saying in a statement Sunday night that the NYSE "has summarily elected to deny its stockholders the opportunity to benefit from a clearly superior proposal." Nasdaq and ICE went on to say that the Deutsche Boerse's offer "is indisputably financially inferior."

Robert Greifeld, chief executive officer of NASDAQ OMX, said he hoped that NYSE Euronext would at least agree to meet to discuss the offer.

ICE chairman and CEO Jeffrey C. Sprecher added that the two companies will take their case to investors. He said he expects "that NYSE Euronext's stockholders will make their displeasure known" about the decision to turn down the higher bid.

Financial exchanges around the globe have been busy pairing up in order to diversify beyond the traditional business of stock trading and provide faster execution for large customers.

Earlier this year, the London Stock Exchange announced a merger with Canada's TMX Group, the owner of the Toronto Stock Exchange. To top of page

Just the hot list include
Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 24,715.09 1.11 0.00%
Nasdaq 7,354.34 -28.13 -0.38%
S&P 500 2,712.97 -7.16 -0.26%
Treasuries 3.07 -0.04 -1.35%
Data as of 8:19am ET
Company Price Change % Change
Bank of America Corp... 30.26 -0.55 -1.79%
Advanced Micro Devic... 13.00 0.18 1.40%
Applied Materials In... 49.51 -4.45 -8.25%
Micron Technology In... 53.39 -1.31 -2.39%
General Electric Co 14.97 -0.06 -0.40%
Data as of May 18
Sponsors

Sections

Musk is a long-term thinker in a short-term world, but his runway is running out. More

Cell phone location data aggregator, LocationSmart, said it has taken a demo feature offline after cybersecurity experts revealed it could be exploited to find location data for millions of cellphones. More