Sunday, February 13, 2011

Deutsche Boerse/NYSE:Inside the Deal

The advanced merger talks between Deutsche Boerse,owner of the Frankfurt stock exchange,and NYSE/Euronext,have been turning heads on a number of fronts.The proposal,in which DB would acquire a controlling 60% stake in NYSE,would allow for eliminating redundancies in their cost base,pointed out Ed Ditmire of Macquarie Group.They would be in the best possible position to move in tomorrow's businesses,and in a pivotal position to capitalize.
Profitable,robust exchanges can help investors in the most difficult situations.The merger should lead to a 20% increase in profits.
To be sure,the deal will be examined on many,many facets.After all,it means selling a financially strategic asset to foreign owners,albeit friendly German ones.New York Mayor Michael Bloomberg supports the deal.Ultimately,it will be seen as good for investors,Mr.Ditmire predicted.The huge exchange will be near the top along with CME Group,Hong Kong and Singapore.
Duncan Niederauer would continue to be the NYSE/Euronext chief executive.
Macquarie Group is a full service financial firm with 300 billion dollars U.S. under management.Founded in Sydney,Australia in 1969,it employs 15,500 people worldwide.
Macquarie Group Limited(MQG),NYSE/Euronext(NYX)

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