World News

NYSE unveils offer for Euronext

NEW YORK (AP) — The New York Stock Exchange (NYSE), seeking to beat rival Nasdaq Stock Market Inc. in the race to become the first trans-Atlantic stock market, offered $10.2 billion (¥1.14 trillion) in cash and shares May 22 for European exchange operator Euronext NV

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 (¥3,031 trillion). The combined company would be called NYSE Euronext.

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.

This broad mix could appeal to major institutional investors as a one-stop trading platform.

Euronext met to consider the offer from the NYSE as well as a competing proposal from Germany's Deutsche Boerse AG, announced May 19.

But Euronext shareholders rejected the proposal March 23.

The offer comes amid global efforts to consolidate exchanges that began in earnest March 30, when the Nasdaq Stock Market made a $4.5 billion (¥505 billion) bid for the London Stock Exchange (LSE)

The Nasdaq, which was rebuffed, has since acquired more than 25 percent of the LSE.

Shukan ST: June 2, 2006

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