Deutsche Bo­erse to sell ISE op­tions ex­change to Nas­daq

The Pak Banker - - MARKETS/SPORTS -

Deutsche Bo­erse is sell­ing U.S. op­tions ex­change op­er­a­tor In­ter­na­tional Se­cu­ri­ties Ex­change for $1.1 bil­lion to Nas­daq, po­ten­tially strength­en­ing its hand in a pro­posed merger with Lon­don Stock Ex­change. Deutsche Bo­erse said late on Wed­nes­day that it was set to book a dis­posal gain in the high triple-digit mil­lions of euros from sell­ing ISE, hav­ing writ­ten it down con­tin­u­ously since ac­quir­ing it for $2.8 bil­lion in 2007.

The Ger­man ex­change's share­hold­ers could ben­e­fit through an ex­tra div­i­dend or share buy­back, an­a­lysts at bro­ker­age Equinet said, adding that Deutsche Bo­erse would have ad­di­tional cash to in­crease its LSE of­fer in the event of a takeover bat­tle for the Bri­tish com­pany.

In­ter­con­ti­nen­tal Ex­change (ICE.N) said this month that it might make a ri­val of­fer for LSE. Peo­ple fa­mil­iar with the merger talks be­tween Deutsche Bo­erse and its Euro­pean peer cau­tioned that money is not the only con­sid­er­a­tion in that deal.

While an en­hanced of­fer may help to win over share­hold­ers, such a step may make it harder to se­cure political back­ing in Lon­don be­cause it would change the char­ac­ter of the deal from a merger of equals to a takeover by Deutsche Bo­erse, they said. Deutsche Bo­erse Chief Ex­ec­u­tive Carsten Kengeter has said he has al­ter­na­tives if the LSE merger does not go through, adding that it is un­clear whether counter-bid­ders re­ally want to buy LSE or want to weaken com­peti­tors by forc­ing them to pay more.

ISE op­er­ates three elec­tronic op­tions ex­changes, which to­gether ac­count for more than 15 per­cent of U.S. vol­umes, while Nas­daq op­er­ates an­other three. Com­bined, Nas­daq would com­mand more than 40 per­cent of the mar­ket, ex­tend­ing its lead as the No.1 U.S. op­tions ex­change op­er­a­tor.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.