NYX Nyse Euronext

Deutsche Boerse AG's (DB1.XE) top management Thursday defended its plan to merge with NYSE Euronext (NYX) and confirmed that they expect a total of up to EUR500 million in synergies through a deal to create the world's largest cash and derivatives trading platform.

"We believe the structure and terms are very attractive for both sets of shareholders," Deutsche Boerse CEO Reto Francioni said during a conference call with analysts to present the exchange operator's first quarter earnings. "We stand by the terms of our agreement."

Earlier Thursday, NYSE shareholders called on the big board operator to open talks with suitors Nasdaq OMX Group Inc. (NDAQ) and IntercontinentalExchange Inc. (ICE), warning that an agreed deal with Deutsche Boerse undervalues their company. The pressure from investors will give Nasdaq and ICE new momentum in their pursuit of NYSE, even after its board twice rejected merger proposals in recent weeks.

Deutsche Boerse and NYSE came up with a higher synergies estimate in recent weeks after having more time to consider their proposed deal, Deutsche Boerse CFO Gregor Pottmeyer said. Around 50% of estimated synergies should come from consolidating technology, with another 30% coming from measures including reorganizing its management structure and combining real estate portfolios.

The initial estimate for EUR300 million in cost synergies was drawn up on shorter notice when Deutsche Boerse and NYSE prepared their merger plans, he added.

Pottmeyer and Francioni said one benefit of the proposed NYSE merger would be improved access to Asian markets, which Francioni said are more fragmented and hard to gain a foothold in. A tie-up with NYSE would allow the merged company to attract new customers and gain new market share, with a focus on organic growth, they said.

Francioni said all necessary regulatory filings for the merger had been submitted in the US and in Germany, and that he's confident the deal remains on track to close later this year.

Separate from the merger plans, Pottmeyer said Deutsche Boerse might consider selling a stake in its clearing unit to an investment bank as part of future initiatives.

-By William Launder, Dow Jones Newswires; +49(0)6929725515; william.launder@dowjones.com

Grafico Azioni NYSE Group (NYSE:NYX)
Storico
Da Giu 2024 a Lug 2024

Grafico Azioni NYSE Group (NYSE:NYX)
Storico
Da Lug 2023 a Lug 2024