NYX Nyse Euronext

The top executive of IntercontinentalExchange Inc. (ICE) said Wednesday his company has more ammunition if the combat for ownership of NYSE Euronext (NYX) requires ICE and its partner Nasdaq OMX Group Inc. (NDAQ) to step up terms of their offer.

ICE's Chief Executive Jeff Sprecher also predicted that shareholders of NYSE Euronext would reject that company's proposed deal with Deutsche Boerse AG (DBOEF, DB1.XE) if a vote were held today, citing investor frustration with the NYSE board's refusal to engage ICE and Nasdaq.

"We have maintained a lot of flexibility around our deal as well," said Sprecher, speaking on a conference call detailing ICE's first-quarter earnings.

Sprecher said in an interview that he and Nasdaq CEO Bob Greifeld see no current need to change terms of their deal, which values NYSE Euronext at about $11 billion, but "we have flexibility if our shareholders and the NYSE shareholders think that there's a better form of giving our purchase price."

The Big Board parent is "rushing" a July 7 vote on the Deutsche Boerse merger while providing investors with little certainty that it can pass muster with European antitrust authorities, according to Jeff Sprecher, chief executive of ICE.

"I think people will question why it is moving too quickly," he said on a conference call discussing first-quarter earnings, adding that ICE and its joint partner Nasdaq have "a lot of flexibility" in terms of improving their offer for NYSE Euronext.

ICE touted a 27% jump in first-quarter profit and record revenue reported Wednesday as volatility in its crude oil, gas oil and soft commodities markets helped the company top analysts' estimates for the quarter.

ICE recorded a profit of $128.9 million, or $1.74 a share, up from $101.2 million, or $1.36 a share, a year earlier. The latest results included 3 cents a share in acquisition-related transaction costs. Revenue jumped 19% to $334.3 million.

Analysts polled by Thomson Reuters forecast a profit of $1.69 a share on $330 million in revenue.

Last month, ICE said its average daily volume during the quarter jumped 24% to 1.6 million contracts, helped by global turmoil arising from political unrest in key oil-producing nations across North Africa and the Middle East. ICE's European futures trading activity rose 36%, though U.S. futures saw a 0.7% decline.

Shares were off 1.6% at $114.58 in early trading Wednesday.

ICE aims to carve out NYSE Euronext's London- and European-based derivatives businesses with Nasdaq OMX taking ownership of its equity- and technology-tied divisions, both seeking to tune up the units by cutting costs. NYSE has so far favored its agreed deal to combine with Deutsche Boerse.

ICE's case for cutting costs from the NYSE Euronext futures business was strengthened by its own discipline on expenses, which came in better than expected for the quarter, according to a research note from Macquarie Securities. Total costs rose about 9% as operating margin climbed to 62%.

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

--Matt Jarzemsky contributed to this article.

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