A global stock exchange created by the proposed New York Stock Exchange-Euronext merger would offer 22 hours of trading a day and would allow U.S.-listed companies to trade on Euronext exchanges in euros, according to Gerald Putnam, president and co-chief operating officer of NYSE Group.
Earlier today, NYSE Group, which operates the Big Board, offered to acquire Amsterdam-based Euronext for about $10.2 billion. Euronext runs the Paris, Amsterdam, Brussels and Lisbon stock exchanges as well as Euronext.liffe, the London-based derivatives exchange. Under terms of the proposal, which Euronext shareholders are schedule to vote on Tuesday, each NYSE Group share will be converted into one share of the combined company, to be called NYSE Euronext. In addition, Euronext shareholders will be able to exchange each of their shares for 0.98 shares of NYSE group and €21.32 ($27.44) in cash.
"The ability to offer cash trading of U.S. equities to European investors - we know there's demand there - and with the overlap in trading hours, we see that as an opportunity," Mr. Putnam said on a conference call today with analysts and reporters.
John Thain, CEO of NYSE Group, who would become CEO of the combined entity, said any deal with Euronext would not likely be completed before the end of 2006.
"We would hope to enter into a definitive agreement within the next 24 to 48 hours," Mr. Thain said. "We would be optimistic to close this transaction by the end of the year.
In addition to the NYSE Group offer, Euronext shareholders on Tuesday will weigh a merger proposal from Germany's Deutsche Boerse, which has not disclosed the financial details of its offer.
Deutsche Boerse is committed to building together with Euronext "a leading global exchange organization on the basis of a shared vision and a true partnership," Deutsche Boerse officials said in a May 19 news release. Deutsche Boerse is looking forward to continuing the discussions with Euronext "in a trustful and constructive way to bring them to a mutually beneficial and successful conclusion."