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Entries in Deutsche Borse (2)

Saturday
Apr022011

Nasdaq Throws Hat in the Ring for Ownership of NYSE

Getty(NEW YORK) -- Nasdaq has prepared a $11.3 billion bid for the New York Stock Exchange, part of an effort to top a German rival's offer.

Nasdaq OMX Group Inc. and Intercontinental Exchange Inc. announced the solicited bid on Friday. The partnership has reportedly been working to draft a deal since February when the NYSE announced it was being purchased by Deutsche Börse AG for $9.5 billion.

The NYSE has confirmed that it received the new proposal and was in the process of reviewing it.

If the Nasdaq and ICE bid is successful, it would mean the Big Board, an icon of American capitalism, would remain in U.S. hands rather than being owned by a German company.

Copyright 2011 ABC News Radio

Tuesday
Feb152011

What's in a Name? It's an Issue in New York Stock Exchange Merger

Photo Courtesy - Getty Images(NEW YORK) -- The New York Stock Exchange and Deutsche Borse are both winners in the merger between the two large stock exchanges. Their costs will decrease as they share technology and resources to create the largest stock exchange in the world. And ideally, those cost savings will pass onto a larger pool of global investors.

As the 220-year-old NYSE and German stock exchange officially announced their merger Tuesday morning, Sen. Charles E. Schumer (D-N.Y.) said New York ought to come first in the new name.

"An outstanding issue that is important to me is the name of the new exchange," Schumer said in a statement. "NYSE is one of the most preeminent brands in the financial industry, and there is no reason it shouldn't come first in the new exchange's name."

During the press conference announcing the merger, Duncan Niederauer, CEO of the NYSE, said no decision has been made regarding a new name.

Sen. Schumer said if New York loses out, the merger process could be in jeopardy.

"If Deutsche Borse pushes any alternative name, it would be an indication that they are not viewing this deal as a merger of equals, and that could have negative consequences with regard to future decisions on the merger's implementations," said Schumer.

Reena Aggarwal, professor of business administration and finance at Georgetown University's McDonough School of Business in Washington, D.C., said many people like Schumer feel strongly regarding the name because of its symbolism.

"Countries see it as a prestige issue," said Aggarwal. "In the old days an exchange was a huge prestige issue for the country. And every country wanted to have an exchange."

But she said the NYSE has been facing business challenges. It has trouble attracting initial public offerings. She also said the merger will allow the NYSE to globalize. Even Schumer acknowledged that the merger was a positive business move.

"The New York Stock Exchange will be the crown jewel in this new operation, and the name of the new company should reflect that," said Schumer.

Schumer said he would keep an open mind until the name issue is settled.

Aggarwal said possible names under consideration have been rumored to be NYSE-DB or the Global Exchange.

"Certainly the NYSE has existed for a very long time and the name has been associated with American capitalism. So I can see that some people would have problems if that name goes away completely," Aggarwal said. "But from a business point of view, it doesn't matter so much, but countries see it as a prestige issue."

Copyright 2011 ABC News Radio 







ABC News Radio