NYSE says no to Nasdaq

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NYSE says no to Nasdaq

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NYSE Euronext says it is sticking to its merger deal with Deutsche Boerse and rejecting a higher takeover bid from the Nasdaq.

The NYSE board called the rival offer “strategically unattractive” and too risky and said it does not fit their vision for the future.

Nasdaq – which made the offer with partner IntercontinentalExchange – now has to decide whether to appeal directly to NYSE shareholders, raise its bid, or give up.

NYSE Euronext Chief Executive Duncan Niederauer criticised Nasdaq’s unsolicited bid as hollow and undefined, saying it would unacceptably carve up his trans-Atlantic exchange operator.

“It’s hard to call it an offer because it’s a loosely worded proposal that was, in our minds, an empty vessel,” he said.

“We had a strategy. The combination with Deutsche Boerse is consistent with that strategy. A dismantling of the company is not. End of story,” added Niederauer, who would be the top boss of a combined Deutsche Boerse-NYSE Euronext.

Nasdaq said the NYSE board’s decision “does not reflect the best interests of their shareholders.”

“The feedback we have received from NYSE Euronext stockholders is very positive, and we would expect NYSE Euronext would, at the very least, meet with us and our advisers to discuss the merits of the proposed combination,” Robert Greifeld, Chief Executive Officer of Nasdaq, said in a statement.