NYSE Euronext has rejected a bid from rival like Nasdaq and ICE, saying it will stick with plans to combine with Deutsche Boerse. The Nasdaq-ICE bid was unwelcome and came after the NYSE and Deutsche Boerse announced their mutual plans. In a statement, NYSE Euronext said the directors found the $11.3bn bid from Nasdaq and ICE deliberately repellent, with unacceptable execution risk. Deutsche Boerse’s offer is for $10.2bn.
Nasdaq and ICE, an Atlanta-based futures specialist, now have to come to a decision whether to raise their offer, make a aggressive bid for NYSE by appealing directly to its shareholders without the backing of the NYSE board, or whether to simply give up on the idea. Despite NYSE’s support for the lower bid from Deutsche Boerse, that combination is not certain as shareholders may prefer to take the higher offer from Nasdaq should it chose to continue with its bid.
There are also regulatory concerns attached to both bids. Under the Nasdaq-ICE bid, ICE would have taken over NYSE’s derived business, while Nasdaq would have taken the stock exchanges and options businesses,thus combining two of the largest US stock exchanges.The Deutsche Boerse bid itself is also likely to raise guideline issues, as a deal would create an enormous presence in certain European fiscal products. There is also some political opposition from those against the idea of a foreign businesses are taking over a Wall Street brand .