NYX Nyse Euronext

The proposed merger between NYSE Euronext (NYX) and Deutsche Boerse AG (DB1.XE) would achieve better synergies and eliminate fewer jobs than a rival bid from Nasdaq OMX Group Inc. (NDAQ) and IntercontinentalExchange Inc. (ICE), NYSE Euronext Deputy Chief Executive Dominique Cerutti said Monday.

Speaking on the sidelines of an NYSE Euronext event in Paris, Cerutti told Dow Jones Newswires most of the EUR400 million cost synergies targeted by the merger plan with Deutsche Boerse would come from economies of scale in information technology, rather than job cuts.

"There's no doubt that, like in many mergers, some jobs will be eliminated, but if you take the EUR400 millions synergies, most of the savings will come from infrastructure," Cerutti said.

NYSE Euronext and Deutsche Boerse are also targeting EUR100 million in revenue synergies, which would bring total synergies to EUR500 million, and EUR3 billion in capital efficiencies for clients through a deal to create the world's largest cash and derivatives trading platform.

The rival bid for NYSE Euronext from Nasdaq and ICE is targeting $740 million net synergies, mostly from cost-cutting. ICE and Nasdaq have argued they can make NYSE Euronext's businesses more profitable by selling the U.K. futures component to ICE and the equities- and technology-related segments to Nasdaq OMX, with both operators seeking to sharply reduce costs.

"When you dismantle, like in the Nasdaq-ICE proposal, you don't have the same critical mass and you need to cut costs very aggressively," Cerutti said. "In the long term our plan creates more value," he added.

NYSE shareholders are scheduled to vote July 7 on the Deutsche Boerse proposal.

-By Elena Berton, Dow Jones Newswires; +33 1 4017 1765; elena.berton@dowjones.com

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