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New York Stock Exchange sold to derivatives company in $8bn takeover

By JohnLast 3640 days ago
http://www.guardian.co.uk/business/2012/dec/20/nyse-sold-8bn-intercontinentalexchange#start-of-comments

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Sale of nearly 200-year-old institution to Intercontinental Exchange comes amid historic shift to electronic trading.

The New York Stock Exchange called time on two centuries of independence on Thursday, agreeing to an $8.2bn takeover that will hand control of the icon of American capitalism to an Atlanta-based energy trader.

The stock exchange's holding company, NYSE Euronext, has agreed to an offer of $33.12 a share in cash and stock from IntercontinentalExchange (ICE). ICE was founded in 2000, NYSE in 1817.

In a press releases, ICE says that the deal  "combines two leading exchange groups to create a premier global exchange operator diversified across markets including agricultural and energy commodities, credit derivatives, equities and equity derivatives, foreign exchange and interest rates."

The Wall Street Journal comments that: 

"Exchanges have turned in recent years to mergers to help offset intense competition and the relentless decline in trading commissions they pocket from brokers and other market participants. Yet the deal-making appeared to reach its limit last year, when several large cross-border mergers failed amid regulators' concerns. ...

"A combination of ICE and NYSE Euronext would likely raise fewer regulatory concerns because the two exchange groups don't have as much direct overlap in the markets they run. ICE's main business lies in energy futures trading, a sector where NYSE Euronext has made few inroads."

Anyway The comments are mostly funny:

"What the Hell..?

Just when I thought Americans could not get any dumber, they sell NYSE to a Chinese Shell Corporation?

Would The Queen accept petitions from Colonists for a return to Her Empire?"

Odin Ruler Aasgard

"This will end in tears."

Strummered

"ICE now runs the world's biggest energy futures market and commodity markets in the US and Canada."

Be afraid - very afraid."

DixiesMayor