NYX Nyse Euronext

The top executive of NYSE Euronext (NYX) said that the Big Board's parent and Deutsche Boerse AG (DB1.XE) have agreed to boil down trading systems to a single platform for all markets, helping to boost cost savings in Deutsche Boerse's proposed purchase of the NYSE.

The streamlining will incorporate technology from both companies, and the decision gained momentum after the unsolicited approach from Nasdaq OMX Group Inc. (NDAQ) and IntercontinentalExchange Inc. (ICE), NYSE Chief Executive Duncan Niederauer said in an interview Tuesday.

"Two months ago, we weren't ready to make that call," Niederauer said in an interview with the Wall Street Journal, calling it an "emotional" issue for the technology-centered exchange companies.

Savings made by streamlining trading systems played into increased cost synergies estimated earlier this week by Niederauer, which went some way toward closing a perceived value gap between the Deutsche Boerse deal and the rival proposal from ICE and Nasdaq.

Niederauer touted the "financial flexibility" of the combined NYSE-Deutsche Boerse that will enable the agreed merger partners to weigh multiple ways to "take care of shareholders" as he works to secure support for the deal ahead of a planned July 7 vote.

NYSE Euronext's board of directors twice this month has rejected a counterproposal from Nasdaq OMX and ICE, which seek to buy the New York Stock Exchange parent and divide its businesses between them.

The chief executives of ICE and Nasdaq OMX on Tuesday called on NYSE Euronext shareholders to push the Big Board's directors for a meeting, which carry "no commitment" and would reassure NYSE Euronext's shareholders that the company has evaluated all options.

"The NYSE should live up to the principles that they espouse for the stockholders of the companies listed on the New York Stock Exchange," wrote Nasdaq OMX Chief Executive Bob Greifeld and ICE CEO Jeff Sprecher in an open letter to NYSE Euronext shareholders. "Ask your board to reconsider their refusal to engage on our superior proposal."

The letter arrived two days ahead of an annual meeting of NYSE Euronext shareholders, slated for Thursday morning alongside the release of first-quarter earnings.

Niederauer on Tuesday said that so far the overtures from Nasdaq OMX and ICE seemed designed for the NYSE Euronext board to reject, calling the initial approach "a loosely worded" letter with no commitments or protections. An improved offer last week remained heavily conditional and amounted to "an artificial sweetener."

-By Jacob Bunge, Dow Jones Newswires; 312-750-4117; jacob.bunge@dowjones.com.

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