Nasdaq Pulls LBO, er, Offer To Acquire NYSE

Tyler Durden's picture

As expected, the world's most grotesquely disguised LBO in the form of the debt-financed acquisition of the NYSE by Nasdaq and ICE, has been pulled, formally on grounds of regulatory approval concerns, realistically but due to "market conditions" manifesting in the form of a market downtick. This could very well be the market top.

From the press release:

Group, Inc. (NDAQ) and IntercontinentalExchange (ICE) today announced
that following discussions with the Antitrust Division of the U.S.
Department of Justice, they are withdrawing the joint proposal they made
in April, 2011 to acquire NYSE Euronext and will not commence the
exchange offer to acquire all of the outstanding shares of NYSE

NASDAQ OMX CEO Bob Greifeld said: "We took the decision to withdraw our
offer when it became clear that we would not be successful in securing
regulatory approval for our proposal despite offering a variety of
substantial remedies, including the sale of the NYSE SRO and related
businesses. We saw a unique opportunity to create more value for
stockholders and strengthen the U.S. as a center for capital formation
amid an ongoing shift of these vital activities and jobs outside of our

"NASDAQ OMX has demonstrated an ability to outperform, whether the
comparison is against all other equity exchanges today, or even against
the largest derivatives exchanges. We have achieved outstanding earnings
growth over the last few years and are confident that our global model
features a healthy mix of product diversification and will continue to
thrive based on our efficiency and ability to innovate.

"We wish to thank our many customers and shareholders who supported our
proposal and acknowledge the efforts of the Antitrust Division in
expediting their review of our Joint Proposal. We have said from the
beginning that NYSE Euronext shareholders should not be forced to vote
on their combination with Deutsche Boerse while antitrust concerns
continued to exist in both the U.S. and the EU. While we are surprised
and disappointed in the Antitrust Division's conclusion, some of the
uncertainty, at least as it relates to our Joint Proposal, has been

ICE Chairman and CEO Jeffrey C. Sprecher said: "We appreciate the
strong support of our investors as we made an opportunistic and
disciplined move to pursue an attractive combination that would preserve
competition in the European derivatives markets. We will maintain our
strong focus on the many initiatives we have underway to continue our
track record of delivering industry-leading growth and returns for our
customers and stockholders. Amid this transaction, we announced the
formation of our Brazilian energy market partnership known as BRIX, the
launch of 68 new products, and we reported the best quarter in the
company's history.

"I also want to acknowledge the consideration shown by NYSE Euronext
stockholders for our joint proposal, which was undertaken with
seriousness and a concern for the evolving global market structure. We
will continue to seek opportunities that benefit our customers and
stockholders, and that leverage our unique global market infrastructure
in commodities, derivatives and clearing."

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writingsonthewall's picture



There - I said it.

firstdivision's picture

Market conditions = they be raping everyone up in here

spanish inquisition's picture

I call Muffin Top on the market! No matter how you dress it up in tight pants, no one wants in.