Deutsche Boerse still gunning for Euronext

FRANKFURT: German stock market operator Deutsche Boerse has indicated it is hoping eurozone politicians will rescue its failed attempt to tie the knot with pan-European rival Euronext, which wants to merge with the New York Stock Exchange instead.

“The debate about the consolidation of Europe’s stock exchanges has a political dimension, because it concerns the integration and efficiency of Europe’s financial markets,” Deutsche Boerse chief executive Reto Francioni said. “I know that politicians recognise the importance (of this), and they recognise it on both sides,” Francioni said.

Last week, NYSE said it was taking over Euronext for around $10bn, thwarting Deutsche Boerse’s plans. Euronext, which operates the Paris, Amsterdam, Brussels and Lisbon exchanges, repeatedly snubbed Deutsche Boerse’s advances, not least because of the latter’s insistence that the headquarters of the combined company remain in Frankfurt.

Francioni told the Handelsblatt that he still believed a European solution was possible. “We naturally see the possibility of implementing our proposal,” he said.

While the management of Euronext prefers a tie-up with the NYSE, the sharheolders of both companies still have to approve the deal, and their approval is by no means certain, Handelsblatt said.

Asked whether Deutsche Boerse might be willing to join a three-way alliance with Euronext and NYSE together, as proposed by Euronext chief Jean-Francois Theodore, Francioni rejected the idea.

“I don’t see us being integrated into an alliance dominated by the NYSE. It would make any strategic sense for us as a group.”