NYSE Euronext (NYX) is considering a dual-track process to
either sell or spin off a European stock trading business that's
attracting interest from potential private equity suitors,
according to people familiar with the situation.
The Euronext arm is due to be separated after the Big Board
operator's planned $10 billion acquisition by
IntercontinentalExchange Inc. (ICE).
Peter Randall, the former head of pioneering trading platform
Chi-X Europe Ltd., is in the early stages of forming a buyout
consortium to consider a bid for Euronext, according to people
familiar with his plans.
Any interest from private equity firms would have to contend
with potential bids from other European exchange operators keen to
create economies of scale from acquiring the world's
seventh-largest stock trading platform by transaction value.
Private equity firms may be attracted by the strong cash
generation from exchanges. Analysts have valued Euronext--which
operates bourses in Paris, Amsterdam, Brussels and Lisbon--at
around EUR1.5 billion, counting other assets slated to be included,
such as NYSE Euronext's commodity trading business in Europe and a
Dutch options trading business.
Mr. Randall has approached a number of buyout firms, according
to people familiar with his plans, and any potential bid for
Euronext is likely to involve a consortium of four or five members,
including two private equity houses.
The executive was the founding chief executive of Chi-X and ran
the business from 2007 to 2009. BATS Global Trading Inc. bought the
operation in 2011 to create Europe's largest share-trading
platform.
NYSE Euronext CEO Duncan Niederauer has indicated Euronext will
likely be floated after its takeover closes, but people familiar
with the situation said ICE was expected to pursue a parallel sale
process. ICE declined to comment.
The merger partners have touted an independent Euronext as
creating a European "champion" that could bolster capital-raising
efforts on the continent. The French government has asked some of
the country's largest banks to invest in a spun-off Euronext,
according to people with direct knowledge of the matter.
Trade buyers that have indicated potential interest include
Deutsche Boerse AG (DB1.XE), Nasdaq OMX Group Inc. (NDAQ) and
Switzerland's Six Group, all of which have smaller European
stock-trading operations than Euronext, according to the World
Federation of Exchanges.
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