Nasdaq, ICE Drop $11 Billion Bid for NYSE Euronext

By MICHELLE CHAPMAN, AP Business Writer

NEW YORK -- Nasdaq and IntercontinentalExchange are withdrawing their proposed $11 billion bid for the parent of the New York Stock Exchange after recognizing they would not receive regulatory approval for the transaction and could potentially face a lawsuit attempting to block the deal.

The decision clears an obstacle to NYSE Euronext's previous $10 billion deal to combine with the German exchange operator Deutsche Boerse.


Nasdaq OMX Group and IntercontinentalExchange said Monday that they held unsuccessful talks with the antitrust division of the Justice Department about their joint bid for NYSE Euronext.

The Justice Department said it informed the companies the government would file an antitrust lawsuit to block the deal, as it believed the acquisition would have substantially eliminated competition for corporate stock listing services and other data products.

Shares of NYSE Euronext dropped $3.99, or 9.8 percent, to $36.90 in pre-market trading, while Nasdaq OMX stock fell 31 cents to $26.60. Shares of Atlanta-based IntercontinentalExchange gained $3.68, or 3.1 percent, to $122.

Nasdaq OMX CEO Bob Greifeld said in a statement that the companies had offered a variety of "substantial remedies" to try to secure regulatory approval, including the sale of the NYSE Self-Regulatory Organization and its related businesses.

"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," he said.

The announcement comes one week after Nasdaq and ICE reached out directly to NYSE Euronext shareholders, issuing a letter saying that the NYSE Euronext board was rushing a vote without exploring better alternatives.

The board had twice rejected the Nasdaq and ICE bid in favor of the Deutsche Boerse offer despite the lower price.

NYSE shareholders are scheduled to vote in early July on the merger with the German company.


Increase your money and finance knowledge from home

Introduction to Preferred Shares

Learn the difference between preferred and common shares.

View Course »

Basics of Diversification

Learn one of the fundamental concepts of building a portfolio.

View Course »

Add a Comment

*0 / 3000 Character Maximum

2 Comments

Filter by:
frank1946

USA now is making final actions to become poverty country.........................Citizens do not even realize the
impact of this loss of investment banking (NYSE) on job growth/income, America is but a shadow of it's past !

New York is not what it once was ! What's next, $ 50,000 Honda Civic ?

Finally, the Democrats have America working for the Germans and Chinese ! Vote Tea Party to force Pols
to deal with REALITY before we are all Slaves to other Nations !

May 17 2011 at 8:01 AM Report abuse rate up rate down Reply
indiaflorist1986

More the coverage lesser is the delivery hassle. That’s the core characteristic for the online gift delivery. For meeting the client’s satisfaction level, this timing is very much essential, and IndiaFloristNetwork.Com is really the one to count on this. Having location coverage spanned over numerous locations, clearly it’s the concern that meets your urgency for delivering the bought gifts at right time. Visit www.indiafloristnetwork.com/Locations.asp for more details.

May 17 2011 at 3:32 AM Report abuse rate up rate down Reply