Deutsche Boerse has dropped its eight billion euro bid for the pan-European exchange Euronext. That clears the way for a transatlantic merger between the New York Stock Exchange and Euronext. Deutsche Boerse said it has given up because it believes it cannot ever get the support it wanted. Chief Executive Reto Francioni said: “We are now abandoning the Euronext project and we will now concentrate on other options. I think it was time and it’s the right moment. We are optimistically looking ahead.”
Francioni added: “We made very clear what conditions we had set for this merger. There was not enough reaction, from the stakeholders, from the shareholders, from Euronext. There are other reasons too. I think the complete package based on the general situation is clear: we are abandoning
He said Euronext, which operates the Paris, Amsterdam, Brussels and Lisbon exchanges, repeatedly rejected Deutsche Boerse’s proposals.
Without giving details, Francioni said Deutsche Boerse is now looking at mergers outside Europe. He said they are now “free to go in all the markets.”
The New York Stock Exchange is by far the world’s biggest in terms of the value of the companies quoted on it worth 18,000 billion euros. Euronext has companies worth a total of 3,700 billion euros.
But Euronext could soon be facing competition as seven big investment banks are planning to launch a new pan-European platform for trading shares by
early 2008. The banks are Credit Suisse and UBS of Switzerland and Germany’s Deutsche Bank, plus Citigroup, Goldman Sachs, Merrill Lynch and Morgan Stanley from the United States.
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