NYSE Chairman Grasso Expects Big Board to Go Public by Thanksgiving
By Neil Roland
NYSE's Grasso Expects Big Board IPO by Thanksgiving (Update1)
(Adds reaction from Microsoft, Intel and Cisco officials in
7th and 8th paragraphs.)
Washington, July 23 (Bloomberg) -- New York Stock Exchange
Chairman Richard Grasso said he expects the world's largest stock
market to convert to a publicly traded corporation and sell its
stock on the Big Board by Thanksgiving.
''I fully expect that you and I, at Thanksgiving, will be
looking at the trading of a New York Stock Exchange stock,''
Grasso said in an interview. ''I've not heard any significant
internal opposition.''
Grasso said earlier this month that consideration of such a
move is being driven in part by competition from about a dozen
electronic trading networks, known as ECNS, which are all part of
for-profit companies. If the exchange sells shares, it's a
''distinct possibility'' it would use stock to acquire its own
ECN, he said then.
Grasso also said that the NYSE will redouble its efforts to
lure Microsoft Corp., Intel Corp., Cisco Systems Inc. and Dell
Computer Corp. from the Nasdaq Stock Market, now that a new rule
gives NYSE listed companies more flexibility in leaving if they
don't want to stay. The new NYSE Rule 500 was approved Wednesday
by the Securities and Exchange Commission.
Thanks, But No Thanks
Grasso's sales pitch may be difficult, however, judging from
the responses of the companies he is trying to woo.
''Microsoft has a long history with Nasdaq and although we
have great respect for the other exchanges, Microsoft has no
plans to change at this time,'' said Microsoft spokeswoman
Caroline Boren.
Likewise, Intel spokesman Chuck Mulloy, said, ''We have a
longstanding and productive relationship with Nasdaq and have no
plans to change. And Cisco spokeswoman Jeanette Gibson said,
''We're happy with our relationship with Nasdaq and we don't have
anything new to report on that end.''
Grasso said that he expects the NYSE to simultaneously sell
stock in itself to the exchange's 1,356 members and to the
public. The NYSE board is likely by Labor Day to approve a
conversion of the exchange into a public company, he said.
The NYSE's chief rival, the National Association of
Securities Dealers, has said it is considering a stock offering
for the Nasdaq Stock Market. The Australian Stock Exchange became
a public company last year. Sweden's OM Gruppen AB purchased the
Stockholm Stock Exchange in 1997.
The 207-year-old NYSE operates as a non-profit membership
organization. A public offering could help align the interests of
often-competing factions of members, including securities firms
that want low costs and floor brokers who want to preserve their
livelihoods. An offering could also make it easier for the
exchange to raise money for new technology or to buy other
markets. |
