The New York Stock Exchange (NYSE) proposed a merger with European exchange operator Euronext NV yesterday to create the first trans-Atlantic stock market, with a value of US$21 billion (16.46 million euros).
The NYSE Group Inc confirmed in a letter the terms of the proposed cash and stock deal with Euro-next, which operates the Paris, Brussels, Amsterdam and Lisbon exchanges.
The deal comes amid global efforts to consolidate exchanges, and could heat up that activity. The NASDAQ Market Inc's acquisition of more than a quarter of the London Stock Exchange prompted Euronext to call off its long-running interest in the British exchange and increased pressure on the NYSE to find a European partner.
Euronext, which holds its annual shareholder meeting today, said in a statement that its supervisory board would meet yesterday to consider the offer from the NYSE as well as a proposal from Germany's Deutsche Boerse AG announced on Friday.
Under the NYSE proposal, each NYSE share would be converted into one share of common stock of the combined company, which would be named NYSE Euronext.
Holders of Euronext ordinary shares would be offered the right to exchange each of their shares for 0.980 shares of NYSE Euronext stock and US$27.22 in cash. Based on the NYSE's closing on Friday at US$64.50, that values each Euronext share at nearly 71 euros below the Friday close of 74.60 euros.
Euronext said that over the weekend it received further details of Deutsche Boerse's proposal made on Friday, which had not contained specific financial terms. DB clarified that the value of its offer would be based on the two groups' average share price over three months, Euronext said.
Deutsche Boerse issued a statement on Monday denying a report that it would consider an all-share offer valuing Euronext at about 90 euros a share, but said it remains in contact with Euronext.
NYSE chief John Thain had brushed off the Deutsche Boerse bid on Friday.
According to terms proposed by the NYSE, the company to be called NYSE Euronext would have its group headquarters at the NYSE's current base and European headquarters at Euronext's base.
"NYSE Euronext will be the world's most liquid and truly global financial marketplace, offering unparalleled benefits for investors and issuers in the US, Europe and across the globe," Thain said in the statement.
The board of a combined company would include 11 directors from NYSE and nine from Euronext. Thain would be chief executive of NYSE Euronext while Euronext's CEO, Jean-Francois Thodore, would be deputy chief executive, with direct responsibility for the European business.
Each of the companies' markets would be subject to local requirements -- a move that seemed aimed at addressing concerns that European exchanges would have to comply with stricter US market rules. NYSE Euronext common stock would be listed on the New York Stock Exchange and Euronext.
The NYSE cited cost and revenue synergies from the proposed combination of US$375 million, saying that would create substantial value for all shareholders.
The transaction terms also assume Euronext will pay to its shareholders its ordinary dividend of US$1.28 per share this year and its previously announced extraordinary dividend of US$3.83 per share.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source
SHOT IN THE ARM: The new system can be integrated with Avenger and Stinger missiles to bolster regional air defense capabilities, a defense ministry report said Domestically developed Land Sword II (陸射劍二) missiles were successfully launched and hit target drones during a live-fire exercise at the Jiupeng Military Base in Pingtung County yesterday. The missiles, developed by the Chungshan Institute of Science and Technology (CSIST), were originally scheduled to launch on Tuesday last week, after the Tomb Sweeping Day holiday long weekend, but were postponed to yesterday due to weather conditions. Local residents and military enthusiasts gathered outside the base to watch the missile tests, with the first one launching at 9:10am. The Land Sword II system, which is derived from the Sky Sword II (天劍二) series, was turned