NYSE eyes merger by end of year

A DEAL between Deutsche Boerse and the New York Stock Exchange (NYSE) could be tied up by the end of this year, details due today are expected to reveal.

An announcement on the progress of the deal could come as soon as this afternoon after the two companies’ boards meet to vote on the matter.

Any delay to the deal’s approval could open the door to rival bidders for NYSE Euronext – one report last night cited CME Group as a potential buyer. Chicago-based CME declined to comment. CME officials have been guiding investors away from expectations that the company would do a merger deal.

NYSE’s general counsel, chief operating officer and global head of technology last night looked set to keep their positions following the planned merger.

However, the deal could face stern opposition from protectionist elements. Yesterday, a labour representative from Deutsche Boerse’s supervisory board raised concerns over the influence the NYSE could have on the German exchange. Johannes Witt said: “It will be a matter of time before the Americans take control. We should be wary of this. It won’t be possible to undo the deal once it is signed.”

The German government has indicated it will play a limited role in the merger, indicating it could be successful.

But other people familiar with the situation said some issues -- such as the name, job cuts in technology, and where other promised cost savings would come -- still need to be worked out in detail.

Negotiations over a name, and where to locate various operations across the two continents, highlight some of the difficulties in bringing together companies that are both operationally complicated and symbols of national pride.