Euronext shareholders approve merger with NYSE
19 Dec 2006
Mumbai: Shareholders of Euronext, the pan-European exchange, have voted massively in favor of its $14-billion merger with NYSE group that operates the New York Stock Exchange, clearing way for the creation of the first transatlantic exchange.
Around 98.2 per cent of shareholders present or represented at the extraordinary general meeting (EGM) in Amsterdam backed the merger deal, with 1.8 per cent voting against, Euronext said.
While there would be equal representation for European and US directors on the 22-member board, Euronext''s merger with NYSE would not burden European-listed companies with the cost of compliance with US accounting rules.
The takeover of Europe''s second-biggest stock exchange, under terms of NYSE''s bid price and based on the previous day''s closing share price, values the exchange at $14.4 billion (€10.9 billion).
European regulators had cleared the merger on 2 December, 2006, and Euronext expects to close the deal within the next three to four months.
The transaction, however, has to cross one more hurdle. Euronext needs approval from the Netherlands. Finance minister Gerrit Zalm of the Netherlands is likely to approve the transaction subject to certain conditions, a statement released by NYSE and Euronext said.
The deal is subject to regulatory approval and to a vote by NYSE shareholders.
.webp)
