A competing bid for the NYSE:
Nasdaq, ICE Make Hostile Play for NYSE Euronext
By DEALBOOK
April 1, 2011, 7:19 am
NASDAQ OMX and IntercontinentalExchange on Friday made a hostile play for NYSE Euronext, offering $42.50 in cash and stock — in a deal that is valued at $11.3 billion.
The joint proposal by the two exchanges bests the Deutsche Boerse offer by 19 percent and represents a 27 percent premium to the NYSE’s stock price before that initial deal was originally announced back in early February.
Under the terms of the transaction, ICE would carve out NYSE’s derivatives business and Nadasq would take the remaining businesses, including stock trading and options in the United States.
“Our industry is undergoing a period of historic change,” Robert Greifeld, chief executive of Nasdaq, said, in a statement. “The combination of the two leading U.S. exchanges delivers an opportunity to build a global exchange platform that has the scale and growth potential to benefit investors, issuers and other market participants. We believe it would increase transparency and liquidity in U.S. markets and create jobs as new companies raise capital.”
For each share they own, NYSE investors would get $14.24 in cash, plus 0.4069 shares of NASDAQ stock and 0.1436 shares of ICE stock.
Bank of America Merrill Lynch and Evercore Group are advising Nasdaq on the deal, with Shearman & Sterling providing legal counsel for this transaction. Lazard, Broadhaven Capital Partners and BMO Capital Markets are working with ICE while Sullivan & Cromwell is representing the company from a legal perspective.
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