July 15, 2024

DealBook: One Vote Down, One to Go for N.Y.S.E. and Deutsche Borse Merger

Henny Ray Abrams/Associated PressThe floor of the New York Stock Exchange.

8:48 a.m. | Updated

With NYSE Euronext shareholders approving the merger with Deutsche Börse, the fate of the exchange merger lies across the Atlantic.

On Thursday, more than 65 percent of NYSE Euronext shareholders voted in favor of the deal, according to people briefed on the matter.

The odds of a deal increased sharply in May once the Nasdaq OMX Group and the IntercontinentalExchange withdrew their rival offer for the New York Stock Exchange operator.

Last month, both companies also agreed to pay out a special dividend to shareholders to help sweeten the proposal. Several proxy advisory firms, including Institutional Shareholder Services, recommended that shareholders back the merger.

Still, the deal is not done.

Deutsche Börse’s shareholders have about a week to tender their shares in support of the merger. The German exchange operator must win the support of 75 percent of shareholders by July 13. Thus far, about 11.11 percent of investors have tendered their shares, according to regulatory documents filed by Deutsche Börse.

People involved in the process say that even that is not too much of a problem, given that many investors are likely to tender their shares in the last few days before the deadline. Some shareholders might also have been waiting for the results of NYSE Euronext’s vote before lending their support.

Deutsche Börse can also ask for a deadline extension of up to two weeks, if necessary.

Spokesmen for NYSE Euronext and Deutsche Börse declined to comment.

In addition to the shareholder votes, another consideration for the deal is government approval. While American antitrust regulators seem likely to approve the merger, deal makers have said that persuading their European counterparts may be more difficult. Still, Deutsche Börse officials have said that they have made “significant progress” in working with regulators.

Article source: http://feeds.nytimes.com/click.phdo?i=6f2cc4491543c29fb36772e606ab66db

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