Nasdaq: 'No basis in fact' to report
suntimes.com
December 24, 2003
BY MEG RICHARDS
NEW YORK -- Nasdaq, the electronic stock market suffering from the collapse of the Internet boom, said Tuesday there is ''no basis in fact'' to a published report that it is exploring a possible merger with the New York Stock Exchange.
The Wall Street Journal, citing unidentified sources, reported Tuesday that Nasdaq chief executive Robert Greifeld approached NYSE officials with the idea about three weeks ago. The concept is still preliminary and no formal proposal has been made, the Journal said.
In a statement, Nasdaq said the story was ''based on rumors and speculation'' and ''has no basis in fact.''
Greifeld and interim NYSE chairman John S. Reed were not available for comment. An NYSE spokesman declined to comment.
The speculation comes during challenging times for both institutions.
The NYSE is dealing with criticism that its open-auction style trading system is antiquated and with the aftermath of controversy about former chairman Dick Grasso's $187.5 million compensation package.
The Nasdaq, which rode high on booming technology stocks during the late 1990s, has struggled to recover from the collapse of many dot-com companies in the last four years.
A merger between the nation's two biggest markets likely would be welcomed by Wall Street firms, which potentially could save money by combining their trading desks and reducing their membership fees.
However, there would be technical issues for the markets if they merged, including the fact that the symbols they use to represent listed companies are incompatible.
Any such merger would be subject to approval by the federal Securities and Exchange Commission.
AP |
