Bid for Euronext hots up again
NYSE may raise offer for Euronext to ward off German interest
In an effort to stave off interest from Deutsche Borse, the New York Stock
Exchange is considering raising its offer for Euronext.
NYSE revealed a ?11bn all-share merger with the European stock exchange in
May, but is now considering increasing the offer to entice Euronext shareholders
who will meet at an EGM early December to finally vote on an offer The Daily
The NYSE’s offer is currently ?427,249 short of the offer from Deutsche
A lesser offer may not be acceptable to Euronext shareholders, including the TCI
hedge fund, many of whom would back a German deal.
The NYSE appears relaxed however, as it is understood that the board, led by
John Thain, believes that as Deutsche Borse’s deal is based on a three-month
weighted average of its share price, the value of its offer will slip.
But at the same time it is aware that Euronext cannot put an offer to its
shareholders which looks uneconomic when compared with the German proposals.