AP Business Writers:
THE NEW York Stock Exchange, seeking to beat rival Nasdaq Stock Market Inc. in the race to become the first trans-Atlantic stock market, offered US$10.2 billion in cash and shares Monday for European exchange operator Euronext NV, which declared the bid to be the best option on the table.
NYSE Group Inc. said its purchase of Euronext, which runs the Paris, Brussels, Amsterdam and Lisbon exchanges, would create "the world's largest and most liquid global securities marketplace" with combined listings of $27 trillion. The combined company, worth $21 billion, would be called NYSE Euronext.
FUTURES AND DERIVATIVES TRADING
The acquisition would allow the NYSE Group to enter into futures and derivatives trading, as well as European stock trading. Combined with its current electronic options trading, the NYSE would be able to deal in stocks, options, futures, commodities and corporate bonds on two continents, up to 12 hours a day - a broad mix that could appeal to major institutional investors as a one-stop trading platform.
Euronext, which holds its annual shareholders meeting Tuesday, issued a statement after its board meeting Monday saying "the transaction with NYSE currently offers the most attractive combination," but it stopped short of a formal recommendation to shareholders. Shareholders will be asked for their views on both proposals before management makes a formal recommendation, the company said.
The NYSE said the proposed combination would result in cost savings of $375 million, saying that would create substantial value for all shareholders.
