BUT WILL NYSE COME FIRST IN THE NAME?
Ahem, sadly for Chuck Schumer, we don’t know yet. NYSE Euronext and Deutsche Börse just unveiled their vision for a Premier Global Exchange Group without quite giving it anything so important as a name:
Deutsche Boerse AG and NYSE Euronext Agree to Combine to Create the Premier Global Exchange Group
…
Expected cost synergies of EUR 300 million/US$ 400 million and substantial opportunities for incremental revenues
Ownership: 60% by Deutsche Boerse shareholders, 40% by NYSE Euronext shareholders on a fully diluted basis
Each share of Deutsche Boerse stock will be exchanged for 1 share of the new company stock and each share of NYSE Euronext stock will be exchanged for 0.4700 shares of the new company stock…
This bit in particular sticks out for some reason:
Combination under newly formed Dutch holding company
The transaction is structured as a combination of Deutsche Boerse and NYSE Euronext under a newly created Dutch holding company, which is expected to be listed in Frankfurt, New York and Paris. On the NYSE Euronext side, this will be effected through a merger of NYSE Euronext and a US subsidiary of the new holding company in which each NYSE Euronext share will be converted into 0.4700 of a share of the new holding company. On the Deutsche Boerse side, the new holding company will launch a public exchange offer, in which shareholders of Deutsche Boerse may tender their shares of Deutsche Boerse for an equal number of shares of the new holding company.
Could it possibly be that even stock exchange nationalism loses out to the Netherlands’ extremely attractive tax shelter laws?
Heaven forbid. Best not tell Chuck though.
NYSE was down 3.49 per cent at pixel time.
Related link:
Worries surface over power of D Börse-NYSE tie-up – FT
An exchange for the bigger, not the better – FT Alphaville