Instant View: Nasdaq, ICE make rival bid for NYSE Euronext
Nasdaq OMX and IntercontinentalExchange have launched a rival bid to buy NYSE Euronext for about $11.3 billion in cash and shares.
The offer is valued at $42.50 per share, a premium of 19 percent to the price proposed by Deutsche Boerse, the companies said in a joint statement.
MARKET REACTION
By 1208 GMT NYSE Euronext shares in Paris were up 11.4 percent at 27.65 euros ($39.14), while shares in Nasdaq OMX and IntercontinentalExchange traded in Frankfurt slipped 0.1 and 1 percent respectively. Deutsche Boerse was down 1.8 percent at 52.56 euros. Shares in the London Stock Exchange, a former bid target for Deutsche Boerse, were up 3 percent at 855.5 pence.
MARKET COMMENTS
ANDREW GIBSON, HEAD OF RESEARCH, GALVAN, TRURO
I'm skeptical about whether Deutsche Boerse will launch a counterbid, but I wouldn't be surprised to see ICAP getting into the fray. Deals in derivatives are getting pushed onto exchanges and these are becoming much more important sources of revenues. I think we may see an off-exchange and bourse operator getting together.
CHRISTIAN MUSCHICK, ANALYST AT SILVIA QUANDT & CIE AG, FRANKFURT
Of course, this is bad at first for Deutsche Boerse. I hope there won't be a big premium. Otherwise, it'd be better to go alone. The deal (now proposed by NASDAQ/ICE) in my opinion is only modestly attractive for NYSE shareholders since the cash-component is only of minor importance while the strategic reasoning is not convincing.
For NASDAQ shareholders, too, this isn't good news since NASDAQ has to take on a lot of debt and synergies should be limited due to regulation. ICE, however, would clearly benefit, even though the price is high.
JOERG RAHN, CHIEF INVESTMENT OFFICER, MARCARD, STEIN & CO, HAMBURG
Both future scenarios for Deutsche Boerse look bad: the first would be to raise its offer for NYSE, which would mean spending more cash. The other scenario, dropping out of the deal, would be bad too but maybe less so than the first one. Yes, you would have a strategic disadvantage but in the long term it could open up other options for Deutsche Boerse in the exchange consolidation drive.
ROLAND PFAENDER, ANALYST, COMMERZBANK, FRANKFURT
The counter-offer has a cash component, rather than offering shares, and that's already attractive in itself. Then the price too is higher. And Deutsche Boerse is now under pressure to come back with something. But it's not a foregone conclusion that they will make a counteroffer.
KARL MORRIS , ANALYST, KEEFE BRUYETTE & WOODS, LONDON
I'm a but surprised, though it's been rumored for some time. It's quite a bold move from Nasdaq and ICE. Certainly I think the premium they're paying is quite high. It makes you wonder what Deutsche Boerse is going to do about this and I struggle to see how they can lift their bid to match, given that when their deal was announced, there was a feeling they were giving too much away.
MANOJ LADWA, SENIOR TRADER, ETX CAPITAL, LONDON
It looks like an easier deal to do. There are no sovereignty issues as there were with the Deutsche Boerse deal, it's at a hefty premium and there's cash as well as shares, so it looks more attractive. At first glance it doesn't look like Deutsche Boerse will come back.
HARRY SEBAG, HEAD OF SALES TRADING, SAXO BANQUE, PARIS
That's a big surprise, and a negative one for Deutsche Boerse. A counter-bid 19 percent higher will be very, very hard to beat. It will also create a lot of waves in the sector, and everyone will have to rethink valuation for all the players. For the broad market, it's always good to see such a fierce M&A battle.
(Reporting by Blaise Robinson in Paris, Simon Falush and Brian Gorman in London, Christoph Steitz and Kirsti Knolle in Frankfurt; Compiled by Dominic Lau; Editing by Greg Mahlich)
($1=.7065 euros)
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