Updated from 12:19 a.m. EST
The companies cautioned Wednesday that no agreement has been reached.
|Deutsche Boerse and NYSE Euronext are in merger discussions.|
"They also noted that there cannot be any assurance that an agreement will be reached or, if an agreement is reached, that a transaction will be completed. Any transaction would be subject to the approval of the two companies' boards, regulatory and shareholder approvals, as well as other customary conditions," a joint press release said.Deutsche Boerse and NYSE Euronext, the owner of the New York Stock Exchange, would merge in all-stock deal. If a deal is reached, Deutsche Boerse shareholders would hold about 59% to 60% of the combined company's equity, while NYSE Euronext shareholders would hold about 40% to 41%. Deutsche Boerse owns the main stock exchange in Germany. "The combined group ... would be the world's largest exchange operator by revenues and profit," the joint statement said. The venture would have two headquarters, one in New York and the other in Frankfurt, Germany. Reto Francioni would be appointed chairman while NYSE's Duncan Niederauer would be named the joint company's CEO. The rest of the executive management team would then be "drawn equally" from both companies, the companies said. The announcement follows news this morning that the London Stock Exchange (LSE) struck a deal to buy Canada's TMX, creating the world's fourth-largest bourse trading $4.1 trillion of stock each year. NYSE Euronext shares rose almost 16% to $38.73. --Written by Theresa McCabe in Boston.
>To contact the writer of this article, click here: Theresa McCabe. >To follow the writer on Twitter, go to @TheresaMcCabe. >To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV