NASDAQ-NYSE Deal: A Revolution?
On Friday, NASDAQ OMX Group Inc. (NDAQ) and IntercontinentalExchange Inc.’s (ICE) initiative to acquire NYSE Euronext Inc. (NYX) for $42.50 per NYSE share in a joint bid blew in as a wind of change. The transaction would be one-third in cash and two-third in stock, making the deal worth approximately $11.3 billion. This is about 15% higher than the earlier proposed merger between NYSE and Deutsche Boerse of $10.0 billion. NASDAQ and ICE plans to finance the cash portion of the deal through cash on hand and a combined financing of $3.8 billion. Additionally, the proposal by the companies have been well-received by a group of banks including Bank of America Corp. (BAC) and Wells Fargo & Co. (WFC) given the companies’ strong cash flows that ensures timely repayment of the debt. While ICE is expected to take over NYSE’s European futures markets (Liffe, Liffe U.S.) and the over-the-counter clearingComplete Story »