Nasdaq OMX Group Inc. (NDAQ) and IntercontinentalExchange (ICE)
withdrew their $11 billion proposal to acquire NYSE Euronext (NYX)
after discussion with the U.S. Justice Department.
"We took the decision to withdraw our offer when it became clear
that we would not be successful in securing regulatory approval for
our proposal despite offering a variety of substantial remedies,
including the sale of the NYSE SRO and related businesses," Nasdaq
Chief Executive Bob Greifeld said.
NYSE shares slipped 8.6% to $37.37 in premarket trading while
Nasdaq was halted and closed Friday at $26.91. ICE was inactive and
closed at $118.32.
Nasdaq launched an unsolicited proposal to buy the Big Board
parent in April, backed by Atlanta-based commodities specialist
IntercontinentalExchange. The Justice department last month
initiated an antitrust review of the proposal, which would have
brought nearly all U.S. stock listings under a merged
Nasdaq-NYSE.
The companies said earlier this month they would take their bid
directly to shareholders of the NYSE's parent after being rejected
by the company as the firms looked to scuttle NYSE Euronext's
merger with Deutsche Boerse AG (DBOEF, DB1.XE).
NYSE Euronext management has been heavily promoting the deal
with Deutsche Boerse to create a $25 billion exchange giant, which
was initially announced in February.
A Deutsche Boerse declined to comment on the bid withdrawal.
Nasdaq said it was surprised and disappointed with the Justice
Department's conclusion.
-By Lauren Pollock, Dow Jones Newswires; 212-416-2356;
lauren.pollock@dowjones.com