Market Leader previously reported about a possible merger between NYSE Euronext and Deutsche Boerse. The board of directors of the famous Nasdaq couldn’t stay indifferent.
In early April Nasdaq and IntercontinentalExchange made NYSE an alternative offer to buy its shares at $42.5 per share (the total sum is $11.3B). However NYSE Euronext rejected the offer. According to Duncan Niederauer, the CEO of NYSE Euronex, the deal contradicts his company’s interests and is rather risky. He also mentioned the 4th development strategy within the framework of the merger with Deutsche Boerse despite a more moderate price - $10,2B.
The shares of the oldest US stock exchange keep growing in value within an upward sloping channel as the price is currently located around its upper border. The price rapidly increased when Nasdaq got interested in NYSE Euronex. After such an upsurge a pullback would be natural. However, the uptrend is still strong so the pullbacks will be suitable for buying at better prices.
It should be noted that even mutual assent is not enough to make a deal as the merger of the USA’s 2 biggest stock exchanges would create a major US monopolist. So, the US Department of Justice probably interfered.
Reference: The current market capitalization of NYSE Euronext is $10.11B.
The Department of Market Sentiment Analysis,
