Sat, Dec 22, 2012 - Page 15 News List

Boards approve ICE’s purchase of NYSE

FUTURES INVESTMENT:Along with its planned purchase of the New York exchange, ICE will also acquire the real jewel in the deal, London-based Liffe futures exchange

AP, NEW YORK

Analysts forecast that ICE’s revenue will reach US$1.4 billion this year, more than double the US$574 million it reported in 2007.

“We believe the combined company will be better positioned to compete and serve customers across a broad range of asset classes by uniting our global brands, expertise and infrastructure,” ICE chairman and chief executive officer Jeffrey Sprecher said.

Sprecher will keep his positions. Four members of the NYSE board will be added to ICE’s board, expanding it to 15 members.

For each share of NYSE Euronext stock that they own, shareholders can choose either US$33.12 in cash, roughly a quarter-share of ICE, or a combination of US$11.27 in cash and roughly one-sixth of a share of ICE.

NYSE’s stock jumped US$8.20, or 34 percent, to US$32.25 in heavy trading shortly after the market opened. ICE’s stock closed up US$1.79, or 1.4 percent, at US$130.1 after falling at the open of trading.

ICE plans to pay for the cash part of the acquisition with a combination of cash and existing debt. It added that the deal will help it cut costs and should increase its earnings more than 15 percent in the first year after the deal closes.

The deal has been approved by the boards of both companies, but still needs the approvals by regulators and shareholders of both companies. It is expected to close in the second half of next year.

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