Amex deal unlikely to be derailed
By Mary Chung in New York
Published: May 25 2003 21:46 | Last Updated: May 25 2003 21:46
An overture by the Chicago Board Options Exchange to hold merger talks with the American Stock Exchange is unlikely to derail the sale of Amex to GTCR Golder Rauner, a Chicago-based private equity firm.
It is understood GTCR is just weeks away from closing a deal to purchase the number-three US stock market for approximately $100m, according to people close to the negotiations.
Amex and the NASD, the regulatory body that owns the Amex, declined to comment. But one person close to the deal said: "The terms are nearly completed. We've been working on this deal for 18 months and we wanted to have it done in the first half of this year and we're on target."
Amex has spent more than two years trying to attract a suitor for a sale. GTCR became the lead contender this year after other potential bidders, including the Hong Kong Stock Exchange, venture capital firm Blackstone Capital Partners, and Eurex, which operates the world's largest derivatives market, bowed out because of corporate governance and ownership issues and concerns about Amex's declining value in a bear market.
GTCR's $100m price is well below the $700m estimate that the NASD reportedly sought when Amex was first put up for sale.
While GTCR is understood to be finalising its purchase of Amex, the CBOE, the largest US options exchange, continues to pursue merger talks with Amex.
William Brodsky, chairman and chief executive of the CBOE, sent a letter dated May 22 addressed to Robert Glauber, the chairman of the NASD, and to Salvatore Sodano, the chairman of Amex, requesting discussions about a possible strategic alliance between Amex and the CBOE.
"We firmly believe that CBOE is the partner that would add the most value to the Amex owners and members through a consolidation," Mr Brodsky wrote.
A spokeswoman from the CBOE would not comment on the letter but it has apparently ruffled some feathers with the parties involved. They said there was no chance of a merger between the two exchanges and a person close to the situation described the timing of the letter as "bizarre". |
