Deal frenzy as Nasdaq eyes a role

NASDAQ, the world’s second largest stock exchange by market capitalisation, could become the latest bourse to merge. The US exchange is said to considering its options following a flurry of deals between rivals.

The New York Stock Exchange (NYSE) said last week it was in advanced talks with Germany’s Deutsche Boerse, only hours after the London Stock Exchange confirmed it had agreed to merge with Canadian stock operator TMX Group.

NYSE’s board of directors met last night to discuss the deal with Deutsche Boerse, with an announcement on the deal expected as soon as tomorrow.

US senator Charles Schumer yesterday said he was told the management team at NYSE would take control of the newly formed group.

His comments could raise concerns in Germany, where the deal is being sold as a German takeover of the NYSE or as a merger of equals.

Should the exchanges complete the transaction the new company could be named DB NYSE Group, according to people close to the negotiations.

Meanwhile, the London Stock Exchange’s planned merger with Canada’s TMX Group could be derailed by Canadian officials.

Dwight Duncan, who as the state of Ontario’s finance minister is tasked with vetting the deal, raised concerns over Borse Dubai, one of the London Stock Exchange’s largest investors, holding 11.3 per cent of the new company.