Companies
Shareholders approve NYSE/ Euronext merger
Shareholders in both Paris-based Euronext and the
New York Stock Exchange (NYSE) voted
overwhelmingly in favour of the
merger of the two stock exchange companies at meetings last month.
John Thain, chief executive of the NYSE, said the vote in favour reaffirmed
its leadership position in global financial markets and meant the companies
could move forward in building the first truly global exchange group.
Meanwhile, the merger has also been receiving approval from regulatory
authorities. Euronext's college of regulators said it would not oppose the deal
although this approval
is conditional on NYSE Euronext maintaining national management of domestic
markets. In addition, the combined group will need to seek approval from the
college for any integration steps beyond the scope of the current agreement.
The
college said that action by the exchanges and assurances from the US
Securities and Exchange Commission (SEC)
suggest, at least in the short-term, there is no serious risk of feared
regulatory overspill.
The Euronext regulators are currently finalising a memorandum of understanding with
the SEC, which will be signed when the combination receives relevant approvals
and the offer is declared unconditional.
Euronext published advice from law firm
Cleary, Gottlieb, Steen & Hamilton, explaining why fears of regulatory
overspill were unfounded.
Gerrit Zalm, Dutch minister of finance, has also written to the exchanges to
indicate that he will grant a licence to the companies to operate the Amsterdam
exchange.
Links
Euronext
New York Stock Exchange
Euronext/NYSE Merger Documents
Securities and Exchange Commission
Cleary, Gottlieb, Steen & Hamilton
January, 2007 |
