Rival Nasdaq examines possible joint bid for market-leading NYSE - Business News - Business - The Independent

Rival Nasdaq examines possible joint bid for market-leading NYSE

Investors are betting on a counter-bid for NYSE Euronext, the parent company of the New York Stock Exchange, which has agreed to merge with Germany's Deutsche Börse, amid talk that its smaller US rival Nasdaq OMX could make a takeover approach of its own.

Nasdaq has been examining the possibility of teaming up with a partner to make a joint bid for NYSE, in a move that would consolidate the two best-known American stock markets – and save Nasdaq from being frozen out of the latest wave of exchange consolidation.

It hopes to gate-crash a union that, by combining Deutsche Börse's dominant equities and derivatives European operations with NYSE's market-leading US stock market, will create that largest exchange group in the world. An all-American deal would also help counter some of the nationalist grumbling that accompanied news of the sale of the New York Stock Exchange to a German company.

One deal under consideration is a joint bid by Nasdaq and Intercontinental Exchange, the fast-growing commodities exchange business, in which NYSE's assets would be split between the pair. Nasdaq would get its hands on the equities trading business, including the New York Stock Exchange's iconic Manhattan trading floor, while ICE would retain NYSE's highly profitable derivatives exchanges in Europe.

While financial-sector analysts put the chances of a Nasdaq bid at less than 50-50, the speculation has kept NYSE shares trading above their implied value under the terms of the Deutsche Börse merger. NYSE shareholders will get 0.47 shares in the combined company for each share they own, according to the deal signed last week, which at lunchtime yesterday would have been worth $35.84 based on the Deutsche Börse share price. In fact, NYSE shares traded at $36.61.

Nasdaq shares slipped as it became clear that the company is hoping to be a buyer in the current wave of consolidation, rather than to become a takeover target. It apparently talked to CME Group, owner of the Chicago Mercantile Exchange, the largest derivatives exchange in the US, about teaming up on a NYSE bid.

Ed Ditmire, an analyst at Macquarie, said Nasdaq faces an uphill battle if it hopes to break up the NYSE-Deutsche Börse marriage, because it is smaller and its shares are less highly valued than NYSE. "I think what we are seeing is contingency planning, making sure that Nasdaq is ready in case something goes wrong with the NYSE-Deutsche deal," he said. The deal has raised competition issues in Europe because it combines two of the three largest derivatives exchanges.

With the London Stock Exchange planning to merge with its Toronto counterpart and even consolidation between the new electronic trading platforms that have sprung up to rival traditional exchanges, Nasdaq faces losing its place in the big league of world exchanges.

"Nasdaq has traditionally been a buyer, but just looking at its market capitalisation you see it is closer to the bottom end of the exchange rankings," Mr Ditmire said.

"Its next move might be as a takeover target."

News
Paper trail: the wedding photograph found in the rubble after 9/11 – it took Elizabeth Keefe 13 years to find the people in it
newsWho are the people in this photo? It took Elizabeth Stringer Keefe 13 years to find out
Arts and Entertainment
Evil eye: Douglas Adams in 'mad genius' pose
booksNew biography sheds light on comic genius of Douglas Adams
Sport
FootballFull debuts don't come much more stylish than those on show here
Life and Style
Kim Kardashian drawn backlash over her sexy swimsuit selfie, called 'disgusting' and 'nasty'
fashionCritics say magazine only pays attention to fashion trends among rich, white women
PROMOTED VIDEO
Arts and Entertainment
TVShows like Agents of S.H.I.E.L.D are little more than marketing tools
Arts and Entertainment
Hit the roof: hot-tub cinema east London
architectureFrom pools to football pitches, rooftop living is looking up
Travel
travel
News
The ecological reconstruction of Ikrandraco avatar is shown in this illustration courtesy of Chuang Zhao. Scientists on September 11, 2014 announced the discovery of fossils in China of a type of flying reptile called a pterosaur that lived 120 millions years ago and so closely resembled those creatures from the 2009 film, Avatar that they named it after them.
SCIENCE
Life and Style
tech
Sport
David Moyes and Rio Ferdinand
FootballRio Ferdinand on why the former manager failed at United
Arts and Entertainment
Matisse: The Cut-Outs exhibition attracted 562,000 visitors to the Tate Modern from April to September
art
News
ebooksAn unforgettable anthology of contemporary reportage
Life and Style
Models walk the runway at the Tom Ford show during London Fashion Week Spring Summer 2015
fashionLondon Fashion Week 2014
News
Kenny G
news
News
peopleThe black actress has claimed police mistook her for a prostitute when she kissed her white husband
News
i100
Life and Style
techIndian model comes with cricket scores baked in
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SQL Developer - Watford/NW London - £280 - £320 p/d - 6 months

£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Senior BA - Insurance **URGENT**

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Training Coordinator / Resource Planner - City, London

£35000 - £38000 per annum + Benefits: Ashdown Group: Training Coordinator / Pl...

Data Governance Manager (Solvency II) – Contract – Up to £450 daily rate, 6 month (may go Permanent)

£400 - £450 Per Day: Clearwater People Solutions Ltd: We are currently looking...

Day In a Page

These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam
'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

Exclusive extract from Janis Winehouse's poignant new memoir
Is this the role to win Cumberbatch an Oscar?

Is this the role to win Cumberbatch an Oscar?

The Imitation Game, film review
England and Roy Hodgson take a joint step towards redemption in Basel

England and Hodgson take a joint step towards redemption

Welbeck double puts England on the road to Euro 2016
Relatives fight over Vivian Maier’s rare photos

Relatives fight over Vivian Maier’s rare photos

Pictures removed from public view as courts decide ownership
‘Fashion has to be fun. It’s a big business, not a cure for cancer’

‘Fashion has to be fun. It’s a big business, not a cure for cancer’

Donatella Versace at New York Fashion Week
The fall of Rome? Cash-strapped Italy accused of selling its soul to the highest bidder

The fall of Rome?

Italy's fears that corporate-sponsored restoration projects will lead to the Disneyfication of its cultural heritage
Glasgow girl made good

Glasgow girl made good

Kelly Macdonald was a waitress when she made Trainspotting. Now she’s taking Manhattan
Sequins ahoy as Strictly Come Dancing takes to the floor once more

Sequins ahoy as Strictly takes to the floor once more

Judy Murray, Frankie Bridge and co paired with dance partners
Wearable trainers and other sporty looks

Wearable trainers and other sporty looks

Alexander Wang pumps it up at New York Fashion Week
The landscape of my imagination

The landscape of my imagination

Author Kate Mosse on the place that taught her to tell stories