Nasdaq Bid Over NYSE

The National Association of Securities Dealers Automated Quotations (Nasdaq) and Deutsche Boerse, a German stock company, are bidding on the shares of the New York Stock Exchange Euronext (NYSE). The NYSE has exchanges in several capitals of Europe, such as Amsterdam, Brussels, Lisbon and Paris.

German competition

The first bid came from the German company. Their initial offer was made in February and on a total of $9.5 billion. The company is based in Frankfurt and organizes shares tradings, transactions services and other securities.

Deutsche Boerse has over 3,300 employees and customers in Europe, Asia and America. The countries that are included on Deutsche Boerse’s map are Germany, Luxembourg, Switzerland, Spain, the Czech Republic and the US. After that, the cities which have the group’s offices are Beijing, Berlin, Chicago, Dubai, Hong Kong, London, Moscow, New York, Paris, Shanghai, Singapore, Tokyo and Washington, D.C.

American payback

To compete with the German offer, Nasdaq recently made alliance with IntercontinentalExchange to manage a better proposal. Together, the two groups came up with the value of $11.3 billion. On a statement, the companies also said that they will pay in cash and stock $42.50 for all of the New York group’s shares. The American offer is 19% higher than the German and 27% over the previous stock share value.

Even though the business seems better with Nasdaq and Intercontinental, another reason that makes nationalists worry is the possibility of a foreign company taking over total control of the American company. Analyst at Keefe Bruyette & Woods, Karl Morris said “It’s quite a bold move from Nasdaq and ICE. Certainly I think the premium they’re paying is quite high. It makes you wonder what Deutsche Boerse is going to do about this and I struggle to see how they can lift their bid to match.”