[winalot] huge news>>>> incoming>>>
[winalot] New York Stock Exchange sold to rival for S$10b Updated 11:13 PM Dec 20, 2012 NEW YORK - The New York Stock Exchange is being sold to a rival exchange for about US$8 billion (S$9.8 billion), ending more than two centuries of independence for the iconic Big Board. The buyer, IntercontinentalExchange, an upstart exchange based in Atlanta, made clear today that little would change for the iconic trading floor in Manhattan's financial district if regulators approve the deal.
[winalot] There will be dual headquarters in New York and Atlanta and ICE will open an office in Manhattan. NYSE CEO Duncan Niederauer will become president of the combined company and CEO of NYSE Group. ICE said that the tie-up will create a top exchange operator covering a diverse lineup of markets and boosting efficiency. "We believe the combined company will be better positioned to compete and serve customers across a broad range of asset classes by uniting our global brands, expertise and infrastructure," said IntercontinentalExchange Chairman and CEO Jeffrey Sprecher. "With a track record of growth and returns, clearing and M&A integration, we are well positioned to transform our combined companies into a premier global exchange operator that remains a leader in market evolution."
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[winalot] Mr Sprecher will keep his positions. Four members of the NYSE board will be added to IntercontinentalExchange's board, expanding it to 15 members. NYSE Euronext shareholders can chose to receive either US$33.12 in cash, .2581 IntercontinentalExchange shares, or a combination of US$11.27 in cash plus .1703 shares of stock. IntercontinentalExchange plans to fund the cash portion of the acquisition with a combination of cash and existing debt. It added that the addition of NYSE will help it cut costs and should boost its earnings by more than 15 per cent in the first year after the deal closes.
[winalot] The deal has been approved by the boards of both companies, but still needs the approvals by regulators and the shareholders of both companies. It is expected to close in the second half of next year. Exchanges have repeatedly attempted to merge recently as competition intensifies and commissions decline. Last year, IntercontinentalExchange and Nasdaq OMX Group made a failed US$11 billion bid to buy NYSE Euronext. Earlier this year, European regulators blocked Deutsche Boerse AG from buying NYSE Euronext. Shares of NYSE jumped 40 per cent in premarket trading to US$33.75 and are headed for a new high for the year. Shares of IntercontinentalExchange rose 5 per cent, to US$134.98.Shares of both companies had been halted in premarket trading earlier today. AP
[winalot] capt ron holy crap!
[healthscans] winalot capt ron please excuse my stupdity but what does this mean for the RV if you don't mind me asking.
[capt ron] So now, different owners than before will benefit from the higher equity trading volumes resulting from our rv. Is that the way to view this story?
[willietrader] healthscans IMO nothing
[capt ron] In my poor mind, EVERTHING is iqd related.
[rustyc] winalot thank for bringing it in..
[healthscans] capt ron mine too!
[winalot] rustyc you are welcome
[healthscans] willietrader Guess we are looking for anything IQD related aren't we?
[Precious] Bonds are sinking and markets impacted from Safe Money Report
[willietrader] healthscans Yes I think that is so true.
[capt ron] winalot, what is your opinion as to what this blockbuster deal means for us in here, if anything?
[winalot] capt ron i have to ponder that a lil bit
[Allbut6] Wheew....now that the sale is done...we can look for the RV....:}
[capt ron] It means that equity trading profits go elsewhere for starters, right?
[Precious] winalot I think they want someone else to crash the market.....then no blame
[winalot] Precious well, that explains today's tanking...
goin4broke] I watched Bloomberg this morning at 3 and the head of HSBC was on and he was emphatic we will never see nor go over the Fiscal cliff