NYSE Euronext rejects Nasdaq merger bid
The NASDAQ is seen in Times Square. NYSE Euronext's rejection of the $11.3-billion bid from Nasdaq and IntercontinentalExchange to buy the company was expected. (April 1, 2011) Credit: Getty Images
The parent company of the New York Stock Exchange said Sunday that it rejected a $11.3-billion bid from Nasdaq and IntercontinentalExchange to buy the company.
NYSE Euronext said that its board decided to turn down the offer, which was submitted earlier this month, because it was "highly conditional" and would have caused unnecessary risk for shareholders.
The company said it is sticking with its plan to combine with German exchange operator Deutsche Boerse AG. NYSE agreed to that $10 billion deal in February.
The rejection of the Nasdaq/ICE bid was expected. Analysts have said that a deal between the companies would have led to more job losses. They also worried that a combination would raise antitrust concerns in Washington if Nasdaq and NYSE created one big U.S. stock market exchange.
NYSE said the Deutsche Boerse deal creates more value for investors and is "significantly more likely to close."
Officials with Nasdaq OMX Group and IntercontinentalExchange Inc. did not immediately return phone calls seeking comment.
Sarra Sounds Off Ep 36: Champs crowned in lax and flag football On the latest episode of "Sarra Sounds Off," Gregg talks with Michael Sicoli and Tess Ferguson about county champs crowned in boys and girls lacrosse, and Jared Valuzzi reports on the Long Island flag football championship.
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