NYSE Euronext (NYX) Flatly Rejects NASDAQ/ICE (NDAQ) (ICE)
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On Sunday, the NYSE Euronext (NYSE: NYX) rejected the unsolicited takeover offer from NASDAQ OMX Group, Inc. (Nasdaq: NDAQ) and IntercontinentalExchange, Inc. (NYSE: ICE) calling it "strategically unattractive, with unacceptable execution risk."
With the rejection, NYSE Euronext reaffirmed its commitment to the original combination deal with Deutsche Boerse AG (XETRA: DB1) saying it is "consistent with the long-term strategy" of the company.
As part of the NASDAQ/ICE deal, NYSE Euronext would be broken up. Commenting on the proposed breakup, NYSE Euronext Chairman Jan-Michiel Hessels said, "Breaking up NYSE Euronext, burdening the pieces with high levels of debt, and destroying its invaluable human capital, would be a strategic mistake in terms of where the global markets are going, and is clearly not in the best interests of our shareholders."
NASDAQ/ICE fired back Sunday night in response to the rejection, calling their $43.13 per share cash and stock offer "clearly superior."
The two said that the NYSE Euronext has done their shareholders a disservice by not even engaging in any dialogue or discussion.
Commenting on the rejection, Robert Greifeld, CEO of NASDAQ OMX said, "NYSE Euronext's Board of Directors is depriving its stockholders of the benefits of a superior proposal, disregarding the fundamental corporate governance principles that it has espoused for the rest of corporate America. 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 advisors to discuss the merits of the proposed combination."
With the rejection, NYSE Euronext reaffirmed its commitment to the original combination deal with Deutsche Boerse AG (XETRA: DB1) saying it is "consistent with the long-term strategy" of the company.
As part of the NASDAQ/ICE deal, NYSE Euronext would be broken up. Commenting on the proposed breakup, NYSE Euronext Chairman Jan-Michiel Hessels said, "Breaking up NYSE Euronext, burdening the pieces with high levels of debt, and destroying its invaluable human capital, would be a strategic mistake in terms of where the global markets are going, and is clearly not in the best interests of our shareholders."
NASDAQ/ICE fired back Sunday night in response to the rejection, calling their $43.13 per share cash and stock offer "clearly superior."
The two said that the NYSE Euronext has done their shareholders a disservice by not even engaging in any dialogue or discussion.
Commenting on the rejection, Robert Greifeld, CEO of NASDAQ OMX said, "NYSE Euronext's Board of Directors is depriving its stockholders of the benefits of a superior proposal, disregarding the fundamental corporate governance principles that it has espoused for the rest of corporate America. 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 advisors to discuss the merits of the proposed combination."
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