UPDATE: Deutsche Boerse, NYSE Euronext Tie-Up On Track For EU Approval -NYSE Official
19 Ottobre 2011 - 8:32PM
Dow Jones News
The planned tie-up of Deutsche Boerse AG (DB1.XE) and NYSE
Euronext (NYX) is on track to receive the European Union's approval
by year-end, a NYSE Euronext official told Dow Jones Newswires on
Wednesday.
The European Commission, the executive arm of the EU, which has
to assess whether the deal is compatible with EU antitrust rules,
has set a provisional Dec. 13 deadline for the verdict.
The commission will hold a formal hearing on the proposed tie-up
on Oct. 27, another person familiar with the matter told Dow Jones
Newswires on Wednesday. That is in line with a recent comment by
Duncan Niederauer, chief executive of NYSE Euronext and slated
chief executive of the merged entity, that the merger partners are
likely to request an open hearing to be held later this month as
part of their response to the EU's statement of objections to the
deal.
The second person familiar with the matter also said Deutsche
Boerse and NYSE Euronext have returned a redacted version of the
commission's formal statement of objections to the commission. Both
parties had received the statement on Oct. 5.
The commission has three major objections against the
combination of the two global exchange powerhouses, several people
familiar with the matter told Dow Jones Newswires last week.
Sticking points center on the handling of derivatives--which the
combined group would dominate in Europe--and the licensing of stock
indexes. Competition authorities want the exchanges' combined
derivatives clearing operations to be opened up to third parties,
three people familiar with the matter told Dow Jones.
Third parties, such as competitors, customers, and securities
issuers, who have requested access to the merger plan records will
get to see a redacted copy or parts of the commission's statement
of objections and can share their views with the commission within
two weeks of receiving the redacted copy.
Two other people close to the matter said "interested parties"
will have the chance to express their views at the hearing.
In the process, the two merger candidates will have to file
remedy proposals to the objections with the commission, which will
ask competitors whether they consider the remedies suitable. Prior
to that, the remedy proposals will have to be approved by Deutsche
Boerse's supervisory board, three people familiar with the matter
said. A date for the extraordinary supervisory board meeting hasn't
been set.
The biggest banks and brokers remain wary of the deal, despite
promises from the exchanges that capital costs to trade will come
down.
Deutsche Boerse and NYSE Euronext agreed to their $17.7 billion
merger in February and won the backing of shareholders in July.
Approval by the EU antitrust authorities, which opened an
in-depth probe in early August, is the biggest hurdle still facing
the deal. Findings in the statement of objections are provisional
and remain open for discussion.
-By Ulrike Dauer, Matt Dalton and Jacob Bunge, Dow Jones
Newswires; +49 69 29725 500; ulrike.dauer@dowjones.com
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