DOW JONES NEWSWIRES
Nasdaq OMX Group Inc. (NDAQ) and IntercontinentalExchange Inc.
(ICE) are making their $11 billion takeover offer for NYSE Euronext
(NYX) hostile, taking it directly to shareholders of the NYSE's
parent after being rejected by the company as the firms look to
scuttle NYSE Euronext's merger with Deutsche Boerse AG (DBOEF,
DB1.XE).
Nasdaq Chief Executive Bob Greifeld said NYSE Euronext's board
has "continually challenged the seriousness of our proposal and
refused to engage us in discussion despite the positive feedback we
have received from their stockholders." He added the offer should
convince the board the seriousness of the cash-and-stock bid,
valued at about $11 billion.
ICE Chairman and Chief Executive Jeffrey C. Sprecher, meanwhile,
said the companies were taking the proposal to NYSE Euronext
shareholders to allow them to consider the deal directly. The offer
faces a number of hurdles, including ongoing antitrust review that
is seen limiting any significant stake-building by ICE and
Nasdaq.
NYSE Euronext management has been heavily promoting the deal
with Deutsche Boerse AG to create a $25 billion exchange giant,
which was initially announced in February. Meanwhile, all NYSE
Euronext directors nominated for the board at the company's annual
meeting won shareholder approval last week, although some voters
dissented due to the board's decision not to open talks with ICE
and Nasdaq.
Nasdaq and ICE on Monday said they remained hopeful that NYSE
Euronext would recognize the value of the bid. A NYSE Euronext
representative wasn't immediately available to comment on the
announcement.
NYSE Euronext's shares were up 0.9% to $40.39 in recent
trading.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com