Amsterdam, Netherlands – Shareholders of European stock-exchange operator Euro next rejected a proposal Tuesday to commit in principle to a takeover by Deutsche Boerse Group, giving a boost to a rival bid from the New York Stock Exchange.
As the matchmaking dance between some of the world’s largest stock exchanges continued, Euronext’s boards reiterated that they prefer an offer from the NYSE Group Inc. to one proposed by the German stock exchange.
Euronext chief executive Jean-Francois Theodore said at the annual shareholders meeting that he and the supervisory board had not made a final decision to formally endorse either bid but advised shareholders to vote against declaring a preference for Deutsche Boerse.
“Your board is only telling you … not to deprive yourself of your freedom of choice,” he said.
Of shares voting, 54 percent were against and 38 percent in favor of committing in principle to the German exchange. Others abstained.
Deutsche Boerse, which holds its shareholder meeting today, said it will review the implications of the Euronext vote over the coming days. The NYSE declined to comment.
Euronext, which runs the Paris, Brussels, Amsterdam and Lisbon exchanges, sits at the center of the current round of stock- market consolidation, after the Nasdaq Stock Market Inc. acquired 25 percent of the London Stock Exchange PLC.
At closing prices Monday, the NYSE’s cash-and-stock offer was worth around $10.2 billion, while Deutsche Boerse’s bid was worth around $11 billion.
The NYSE bid contains $27.38 per share in cash, versus $9.91 per share from Deutsche Boerse, and the Deutsche Boerse deal requires the combined company to carry more debt.
