NYSE rejects Nasdaq, IntercontinentalExchange bid

AP News
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Posted: Apr 10, 2011 2:25 PM
NYSE rejects Nasdaq, IntercontinentalExchange bid

The parent company of the New York Stock Exchange said Sunday that it rejected an $11.3-billion bid from Nasdaq and IntercontinentalExchange to buy the company.

NYSE Euronext said that its board decided to turn down the offer, which was submitted earlier this month, because it was "highly conditional" and would have caused unnecessary risk for shareholders.

The company said it is sticking with its plan to combine with German exchange operator Deutsche Boerse. NYSE agreed to that $10 billion deal in February.

The rejection of the Nasdaq/ICE bid was expected.

The rival offers for NYSE came as the trading of stocks, options and other investments has become highly competitive. Technology has dramatically driven down costs of trading, and newer companies like BATS Exchange and Direct Edge have taken away business from institutions like the NYSE and Nasdaq.

That has forced those companies to seek mergers as a way to ensure their survival.