May 23, 2006 | posted by Michael Baxter in Uncategorized |

Yesterday, it seemed as though wedding bells were to
ring for the New York Stock Exchange and Euronext. Today, it’s Deutsche Boerse’s turn
to get on bended knees and await the response from the European network of stock
markets. And you would have thought that the German stock market had outgunned its
US rival, since its offer of $11 billion made yesterday, was only a little shy of a $1
billion more the NYSE’s $10.3 billion bid. But, despite the German bid being worth more
bucks, the company from New York remains favourite.

The advantages of the German bid are clear cut. More money is on offer and it
would create a Europe-wide market, presenting substantial cost saving opportunities. But
with the head office in Frankfurt, job losses would be a price to be paid.

On the other hand, the NYSE merger creates the opportunity for a global market, and
an unprecedented level of liquidity, together with a trading day only a little short of 24
hours.

The feature that most attracted the NYSE to Euronext was its ownership of the
London Liffe market. The opportunity to create a global derivatives
market, proved too attractive to resist.

Amsterdam, is to be the location for a gathering of Euronext’s share holders, who
will decide its fate. And ironically, despite the antipathy between France and the US over
the war in Iraq, it seems that a unification of the Paris centred Euronext and the New
York Stock exchange will form the world’s first global exchange.

Where does this leave the LSE? Some say its boss, Clara Furse, must surely be
rueing the day she didn’t grab Liffe. All of a sudden it only appears to have the one suitor
- NASDAQ - and some fear that NASDAQ can’t rustle up enough readies to make the
offer Ms Furse would settle for.