US stock exchanges Nasdaq and ICE are dropping their $11.3billion bid for rival NYSE Euronext. The two exchanges concluded the proposed occupation would not be approved by US regulators. NYSE Euronext had already rejected the unwanted bid for the same reasons previous month.
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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.
This new offer, valued at $42.50 per share, is 27% above the company’s valuation before Deutsche Boerse’s initial bid in February. ICE, an Atlanta-based futures predictor, is interested in NYSE’s derivatives business while Nasdaq would like the stock exchanges and options businesses.