NYSE targets higher savings

City A.M. Reporter
NYSE Euronext sees cost savings in its $9.8bn (£5.9bn) deal with Deutsche Boerse at closer to €400m (£354m), up by about a third from its initial estimate, according to a spokesman.

NYSE chief executive Duncan Niederauer also sees the biggest NYSE and Deutsche Boerse customers saving at least $3bn from the combination of their European derivatives platforms, according to spokesman Richard Adamonis.

The new savings estimate, along with a €100m in benefits coming from cross-selling and distribution opportunities, would bring the total savings and benefits from the deal to about $725m, closer to the estimates from a competing takeover offer.

Nasdaq OMX Group and IntercontinentalExchange have launched a rival $11.2bn takeover bid for NYSE Euronext. That deal promises net savings and benefits, or synergies, of $740m.

Last week, NYSE’s board rejected the Nasdaq/ICE bid for the second time in 11 days.

All four exchanges involved in the increasingly bitter takeover battle are trying to persuade NYSE shareholders to back their deal.

Niederauer’s comments come ahead of a closely watched NYSE shareholder meeting on 28 April for their annual vote on the companys directors.

Analysts have said that vote could be an early sign of how shareholders feel about the NYSE board’s decision to back the Deutsche Boerse over the rival, higher bid.