Wall Street News


Nasdaq and ICE Drop Offer for NYSE Euronext.

by Dealbook NY Times:

DESCRIPTION
Nasdaq OMX Group and IntercontinentalExchange announced on Monday they were withdrawing their bid for NYSE Euronext, after antitrust regulators said the deal would not gain the necessary approvals.

“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,” the Nasdaq chief executive, Robert Greifeld, said in a statement.

DESCRIPTION

NYSE Euronext shareholders expecting the Nasdaq bid to at least extract more from the Deutsche Börse were disappointed, and shares of NYSE Euronext were down more than 10 percent in mid-morning trading.

“Breaking up NYSE Euronext, burdening the pieces with high levels of debt and destroying its invaluable human capital would be a strategic mistake in terms of where the global markets are going, and is clearly not in the best interests of our shareholders,” the NYSE Euronext chairman, Jan-Michiel Hessels, said in a statement in April. “The highly conditional break-up proposal from Nasdaq/ICE would also require shareholders to shoulder unacceptable execution risk.”

Nasdaq and ICE have a mixed deal-making record. Nasdaq tried and failed to buy the London Stock Exchange, while ICE lost out to the CME Group in a battle to acquire the Chicago Board of Trade.

Dealbook NY Times

Good call by Nasdaq as it seems the Department of Justice was not going to approve of merger as it would have given Nasdaq a 50% share of the market. Nasdaq’s failed acquisitions in the past may stem from their large debt which is bringing down their share price slowly but steadily. 

Better luck next time, Nasdaqueans