Louisiana Municipal Police Employees' Retirement System, Baton Rouge, filed suit in New York to stop the planned $9.53 billion sale of NYSE Euronext to Deutsche Boerse.
The proposed deal, which would create the largest owner of equities and derivatives markets, won't offer a fair price to NYSE's public shareholders, the $1.18 billion pension fund said in a class-action complaint filed Friday in New York State Supreme Court in Manhattan.
“In light of defendants' breach of their fiduciary duties in agreeing to an unreasonably low price for the sale of the NYSE and agreeing to unreasonable and draconian deal protections,” shareholders are “entitled to enjoin the proposed transaction or, alternatively, to recover damages in the event the proposed transaction is consummated,” according to the complaint.
Under the planned sale, Deutsche Boerse will swap one share of its own stock for one share in the new company, while every NYSE Euronext share will be converted into 0.47 of a share. Shareholders have filed other lawsuits over the deal in Delaware and New York.
Eric Ryan, a spokesman for NYSE, declined to comment. Naomi Kim, a spokeswoman for Deutsche Boerse, had no immediate comment.