IntercontinentalExchange to buy NYSE for $8.2B
NEW YORK The New York Stock Exchange (NYX) is being sold to a rival exchange for about $8 billion, ending more than two centuries of independence for the iconic Big Board.
NYSE to sell to rival in $8B deal
The buyer, IntercontinentalExchange Inc. (ICE), an upstart exchange based in Atlanta, made clear Thursday that little would change for the iconic trading floor in Manhattan's financial district if regulators approve the deal.
There will be dual headquarters in New York and Atlanta and ICE will open an office in Manhattan. NYSE CEO Duncan Niederauer will become president of the combined company and CEO of NYSE Group.
ICE said that the tie-up will create a top exchange operator covering a diverse lineup of markets and boosting efficiency.
"We believe the combined company will be better positioned to compete and serve customers across a broad range of asset classes by uniting our global brands, expertise and infrastructure," said IntercontinentalExchange Chairman and CEO Jeffrey Sprecher. "With a track record of growth and returns, clearing and M&A integration, we are well positioned to transform our combined companies into a premier global exchange operator that remains a leader in market evolution."
Sprecher will keep his positions. Four members of the NYSE board will be added to IntercontinentalExchange's board, expanding it to 15 members.
NYSE Euronext Inc. shareholders can chose to receive either $33.12 in cash, .2581 IntercontinentalExchange Inc. shares, or a combination of $11.27 in cash plus .1703 shares of stock.
IntercontinentalExchange plans to fund the cash portion of the acquisition with a combination of cash and existing debt. It added that the addition of NYSE will help it cut costs and should boost its earnings by more than 15 percent in the first year after the deal closes.
The deal has been approved by the boards of both companies, but still needs the approvals by regulators and the shareholders of both companies. It's expected to close in the second half of next year.
Exchanges have repeatedly attempted to merge recently as competition intensifies and commissions decline.
Last year, IntercontinentalExchange and Nasdaq OMX Group Inc. made a failed $11 billion bid to buy NYSE Euronext.
Earlier this year, European regulators blocked Deutsche Boerse AG from buying NYSE Euronext.
Shares of NYSE jumped 40 percent in premarket trading to $33.75 and are headed for a new high for the year. Shares if ICE rose 5 percent, to $134.98.
Shares of both companies had been halted in premarket trading earlier Thursday.
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Accounting is getting hard these days with the big banks caught in money laundry scandels , so improvements to the system is required ,so move to Atlanta system ?
"The NYSE announced its plans to merge with Archipelago on April 21, 2005, in a deal intended to reorganize the NYSE as a publicly traded company. NYSE's governing board voted to merge with rival Archipelago on December 6, 2005, and become a for-profit, public company. It began trading under the name NYSE Group on March 8, 2006. A little over one year later, on April 4, 2007, the NYSE Group completed its merger with Euronext, the European combined stock market, thus forming the NYSE Euronext, the first transatlantic stock exchange"
Caterpillar (CAT) has 100 facilities worldwide, 51 in the US, 52 overseas, HQ, STILL Peoria, IL. Why single out TN? Boeing has over 100K employees in eight states, the lion's share (75K) STILL in Washington state, HQ moved to CHICAGO in 2001.
Re "Boring in SC", we only do PARTIAL assembly on the Dreamliner, and there are less than 600 employees TOTAL. Those hired locally work for hourly rates below the national average for aviation-related jobs. Management positions are held by Boeing employees from Washington, and most of the higher-paid positions are subcontractors from other places. Boeing received MASSIVE tax incentives (basically a bribe so then-Gov. Mark Sanford could brag about bringing "business to SC") to open the small plant here. It has had ZERO effect on our high unemployment.
"Motor City" has LONG had facilities outside Detroit; auto companies are ALL global now. Upstate SC has also had a BMW plant for years, but I wouldn't say "BMW is in SC" with any emphasis - it's just ONE plant that makes sports cars that are shipped out of Charleston BACK to Germany, and again, ZERO impact on our percent of unemployed.
NYSE and ICE will have joint headquarters, and you don't see ICE moving Wall Street to Georgia, Alabama, or Mississippi, do you?
The "South" STILL has among the worst SAT scores, highest incidence of teen pregnancies, highest number of welfare recipients, high unemployment, below average wages, poor health care, etc.
The REGION is NOT "rising"; Atlanta's overall prosperity (compared to the REST of the South) is the one exception. Every little bit helps, but we still have a LONG way to go.