Deutsche Boerse banks on upper hand in merger

DEUTSCHE Boerse will have the upper hand in the planned mega-merger deal with NYSE Euronext, the exchange operators’ chief executive told a paper, as fears that the German firm will lose power linger.

The proposed $10.2bn (£6.2bn) takeover of NYSE Euronext by Deutsche Boerse unveiled last month would leave Boerse’s shareholders with 60 per cent of the combined entity, but analysts have cautioned that the company may end up with less power.

NYSE Euronext Chief Executive Duncan Niederauer told NYSE staff the deal was a “merger of two great companies, not a sale or an acquisition”.

In an interview with German business daily Handelsblatt, to be published today, Deutsche Boerse Chief Executive Reto Francioni said the high market capitalisation “puts us (Deutsche Boerse) in a position to do this deal the way we envisage it.”