Andrew Kelly/ReutersTraders on the floor of the New York Stock Exchange on Thursday.
8:39 a.m. | Updated
The owner of the 220-year-old New York Stock Exchange on Thursday agreed to an $8.2 billion deal that would give control of the longstanding symbol of American capitalism to an upstart competitor.
NYSE Euronext said that it would sell itself to the IntercontinentalExchange for about $33.12 a share in cash and stock. The combined company would have headquarters in both ICE’s home of Atlanta and in New York.
The takeover signals the revival of consolidation in the world of market operators, after a wave of deals dissipated amid concerns over antitrust and nationalist sentiment. ICE had partnered with NYSE Euronext’s main rival, the Nasdaq OMX Group, in an $11 billion hostile bid for the Big Board’s parent, but that offer was blocked by the Justice Department.
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Documents: The press releaseAnd NYSE Euronext had sought to combine with Deutsche Börse, creating a global giant in the trading of derivatives. But that merger was stymied by European antitrust regulators.
Thursday’s deal is expected to run into fewer problems. ICE and NYSE Euronext have little overlap: the former focuses on the trading of commodities like energy products, the latter on stocks and derivatives.
Indeed, while the New York Stock Exchange, with its opening bell and floor traders, has been the public image of a stock market for two centuries, it is NYSE Euronext’s businesses in the over-the-counter trading of derivatives — including the Liffe market in London — that is the main attraction in the merger talks.
Lucas Jackson/ReutersJeffrey Sprecher, the chief of the IntercontinentalExchange, would keep that role in the newly enlarged market operator.
As part of the deal, ICE will consider spinning off NYSE Euronext’s European stock market operations.
Shareholders of NYSE Euronext would own about 36 percent of the combined company.
ICE’s chief executive, Jeffrey C. Sprecher, would keep that role in the newly enlarged market operator. NYSE Euronext’s chief, Duncan L. Niederauer, would be president.
Both companies relied on armies of advisers. ICE was advised by Morgan Stanley, BMO Capital Markets, Broadhaven Capital Partners, JPMorgan Chase, Lazard, Société Générale and Wells Fargo. It received legal counsel from Sullivan Cromwell and Shearman Sterling.
NYSE Euronext was advised by Perella Weinberg Partners, BNP Paribas, the Blackstone Group, Citigroup, Goldman Sachs and Moelis Company. It was counseled by Wachtell, Lipton, Rosen Katz; Slaughter May; and Stibbe N.V.
Article source: http://dealbook.nytimes.com/2012/12/20/upstart-market-operator-clinches-8-2-billion-deal-for-n-y-s-e/?partner=rss&emc=rss