Via Reuters on Wednesday afternoon:
RTRS-D.BOERSE<DB1Gn.DE> SHARES SUSPENDED – REUTERS DATA 15:21 09Feb11 RTRS-D.BOERSE<DB1Gn.DE> SHARES SUSPENDED FROM TRADING IN FRANKFURT – REUTERS DATA
And Dow Jones:
NYX: NYSE Euronext trading halted, pending news DJW 15:24 *DJ NYSE Euronext (NYX) Halt: DJW 15:24 *DJ NYSE Euronext (NYX) Halt: News. Last 35.12 BN 15:24 *TRADING HALT: NYX (NYSE)-NEWS PENDING
Coincidence?
We don’t think so:
In a completely unsourced report, Der Aktionaersbrief’s Parkett Gefluestercolumn says a Deutsche Boerse merger with NYSE Euronext is in the works. Comments that talks are at advanced stage but that exact steps are not yet known. Says it is conceivable that a holding company would be formed that would make a takeover offer to Deutsche Boerse shareholders. Says that in a second step, NYSE Euronext would merge with a US subsidiary of the holding company. Says the logic for such a move is cost savings and synergies.
Here is the report.
Update: 15.55 (GMT).
RTRS-NYSE EURONEXT <NYX.N> TO MAKE STATEMENT TO CLARIFY ITS POSITION RELATED TO DEUTSCHE BOERSE AG <DB1Gn.DE> -SOURCE
RTRS-NYSE EURONEXT STATEMENT UNRELATED TO LONDON STOCK EXCHANGE GROUP PLC <LSE.L>-TMX GROUP INC DEAL -SOURCE
Update: 16:00 (GMT). Looks like it is a merger:
RTRS-D.BOERSE <DB1Gn.DE> IN MERGER TALKS WITH NYSE-EURONEXT <NYX.N> -SOURCES
Gut gemacht Aktionaersbrief’s Parkett Gefluester column.
Great hit.
Update: 16.36 (GMT).
— CONFIRMED—
NEW YORK and FRANKFURT, 9 February 2011 – In light of recent market rumors, Deutsche Börse AG and NYSE Euronext (NYX) today confirmed that they are engaged in advanced discussions regarding a potential business combination. They cautioned that no agreement has been reached. They also noted that there cannot be any assurance that an agreement will be reached or, if an agreement is reached, that a transaction will be completed. Any transaction would be subject to the approval of the two companies’ boards, regulatory and shareholder approvals, as well as other customary conditions.
And look at the cost synergies:
NYSE Euronext and Deutsche Börse AG expect to be able to realize approximately €300 million in cost synergies, principally from economies of scale in information technology, clearing operations, market operations and corporate center functions. In addition Deutsche Börse AG and NYSE Euronext expect to generate substantial incremental revenues from clearing services, product innovation and cross-selling opportunities between the global cash and derivatives businesses.
€300m! That put’s the LSE deal with TMX in the shade. They are targeting cost savings of just £35m.
LSE boss Xavier Rolet must be furious. His tie-up with TMX has now been blown out of the water. Indeed, LSE shares, which were trading 9 per cent higher before the NYSE Euronext and Deutsche Börse deal broke, closed just 28p higher at 920p.
And we quite concerned what a merged NYSE/DB means for London as Europe’s financial centre.
Related link:
LSE/TMX – a defensive merger? – FT Alphaville