Deutsche Börse in merger talks with NYSE

Deutsche Börse and NYSE Euronext said on Wednesday they are in "advanced discussions" to merge and create the world's largest stock exchange operator by revenues and profits.

Deutsche Börse in merger talks with NYSE
Photo: DPA

“This transaction creates a group that is both a world leader in derivatives and risk management and the premier global venue for capital raising,” the firms said in a joint statement.

“The global capital markets would benefit from the creation of the most efficient, transparent and well-regulated markets for issuers and clients around the world.”

The announcement came hot on the heels of the London and Toronto stock exchanges unveiling a landmark merger, creating one of the world’s biggest trading platforms that will dominate the raw materials and energy sectors.

Shares in Deutsche Börse were suspended before the announcement while NYSE Euronext soared by close to 20 percent.

Deutsche Börse’s market value is €11.3 billion ($15.5 billion) and NYSE Euronext $9.2 billion, based on Friday prices.

It is not the first time that the German firm, which operates the Frankfurt stock exchange, has attempted to go down the aisle with Euronext. Its earlier advances were spurned, however, and in 2007 Euronext merged with the NYSE.

Deutsche Boerse also tried and failed three times to buy the London Stock Exchange (LSE).

Under the all-share deal being discussed by Deutsche Börse and NYSE Euronext, the German firm’s shareholders would hold 59-60 percent in the new company and those of NYSE Euronext 40-41 percent.

NYSE Euronext’s equities markets, which include the New York, Paris, Brussels and Amsterdam stock exchanges, represent one third of world equities trading, the most liquidity of any global exchange group.

The combined group would offer clients “global scale, product innovation, operational and capital efficiencies, and an enhanced range of technology and market information solutions,” the statement said.

The companies expect to achieve savings of €300 million ($410 million).

In addition, they hope to generate “substantial” extra revenues from clearing services, product innovation and cross-selling opportunities between their global cash and derivatives businesses.

The combined group would have dual headquarters in New York and Frankfurt. Chairman would be Reto Francioni, based in Frankfurt, and chief executive Duncan Niederauer in New York.

They cautioned that they could give no assurances that any agreement would be reached nor that if an agreement was reached, that a transaction would be completed.

Markus Huber, analyst at ETX Capital, cautioned that the deal could fall foul of competition watchdogs given the scale involved.


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German woman sues airport security for missing flight to Mallorca

An airline passenger is suing police after missing her flight to Mallorca in Spain due to having to wait in a lengthy cue at airport security, German media reports.

German woman sues airport security for missing flight to Mallorca
Airport security controls. Photo: DPA

The 32-year-old businesswoman from Bochum, near Dortmund in western Germany, was travelling to Palma de Mallorca from Cologne-Bonn airport on May 19th last year, the Bonn newspaper General Anzeiger reports.

The woman reportedly arrived at the airport to check-in two hours before her flight departure time. After having to wait more than an hour at the security control area, despite raising concerns with staff that she was running out of time, the woman raced to the gate to catch her flight but she was too late – boarding was already completed.

At the Bonn district court, the woman is suing the Federal Republic of Germany – as the employer of the Bundespolizei, the Federal Police – for more than €738 in damages.

After missing her flight she was forced to take a plane from Düsseldorf to her destination the next morning, which had cost €540, according to the General Anzeiger.

The passenger is accusing the Federal Police, which is responsible for airport security controls, of a 'breach of duty': she says not enough control facilities were open when she was due to fly, and too few staff were working.

She believes a lack of organization led to her missing the flight.

However, the defendant disagrees. Police argue that there were enough controls open on that day, and that the number of staff depends on the amount of passengers passing through the airport. The police received this information from the airport operator.

The court must now clarify whether the queue was actually caused by a lack of staff or by other causes which the police are not responsible for.

A settlement offer of more than €150 was rejected by the plaintiff, the newspaper reports.

The case will be reviewed and a decision will be made by judges in Bonn.