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Former NYSE (NYX) CEO Sees Battle for the Exchange "Far From Over" (NDAQ) (ICE)

April 1, 2011 3:21 PM EDT
Former New York Stock Exchange (NYSE: NYX) Chairman Dick Grasso told Fox Business Network’s Charlie Gasparino that the joint bid by NASDAQ (Nasdaq: NDAQ) and the Intercontinental Exchange (NYSE: ICE) for the NYSE, will not be the final offer for the brand.

“I think what the market reflects today is this is a long way from over. The reality is if you look at the ICE/NASDAQ bid of $42.50 only 3.8 billion of the 11.3 billion subject to financing. Which means to me there is a lot of room for NASDAQ/ ICE to respond if in fact as many would speculate, and I would join them in that speculation, that it’s not over from a Deutsche Boerse standpoint. If DB comes back with a higher offer for consolidation, my guess is NASDAQ and ICE are still sitting on a lot of room to move their bid up," Grasso said.

Grasso added that the deal would face significant regulatory review. "I would not get overly concerned about the concentration of listings; I would look at where the stocks actually trade.”

"If you had the opportunity to buy the world’s greatest brand in financial services. A brand that really sits with no peer. You would have to compare NYSE to Disney and Coke and IBM in terms of its brand recognition and global respect. Let’s face it, this war is far from over.”

Despite the $42.50 per share bid, shares of NYSE are trading up 13 percent to just $39.65 in late market trade on Friday.


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Charles Gasparino