NASD Reaches an Agreement to Sell Amex to Its 864 Members
Tue Nov 4, 2:35 AM ET
NEW YORK -- The National Association of Securities Dealers, which owns the American Stock Exchange, announced a deal to sell the stock and option exchange to the Amex's 864 members, Tuesday's Wall Street Journal reported.
The deal, described in a joint statement late yesterday, appears to have closed the door on an attempt by the Chicago buyout firm GTCR Golder Rauner to buy Amex. NASD ended exclusive talks last month with GTCR Golder Rauner, which had agreed earlier this year to buy the Amex for about $110 million. Nancy Condon, an NASD spokeswoman, said at the time the NASD was considering alternatives including returning equity to Amex members.
Financial terms of the latest deal weren't disclosed, although a person familiar with the matter said NASD extended an existing $50 million loan to Amex for an additional 7 1/2 years. The association will also provide a new loan to Amex of as much as $17.5 million.
"This transaction provides for a new, stronger American Stock Exchange that is independent and well capitalized. The combination of our new structure and strategic plan will allow us to lead the marketplace," the Amex Membership Corp., an umbrella entity for the exchange's traders, said in a statement. GTCR officials couldn't be reached for comment.
Wall Street Journal Staff Reporters Peter A. McKay and Kopin Tan contributed to this report. |
