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Old 02-09-2011, 04:11 PM
 
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Interesting developments today in the merger mania of the marketplaces that handle the trading of shares and securities.

Deutsche Börse of Frankfurt, Germany entered into talks with NYSE/Euronext based in New York City this afternoon regarding entering into a stock merger that would make the flagship symbol of American capitalism, the stock trading floor of the NYSE, a subsidiary of Deutsche Börse. Deutsche Börse's stockholders would control 60% of the merged company and they would maintain operations in both Frankfurt and New York City.

The Wall Street Journal has begun speculating the live trading floor could go out the door in favor of trading only via technology/internet as Deutsche Börse just made the decision to close their live floor in Frankfurt and could have the NYSE do the same.

Thoughts???
Would you want the US government to step in and stop the NYSE from being controlled by Germany???

NYSE Euronext and Deutsche Börse in Merger Talks - NYTimes.com

FACTBOX-UPDATE 1-A D.Boerse-NYSE deal would be latest tie-up | Reuters

NYSE, Deutsche Börse in Deal Talks - WSJ.com
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Old 02-09-2011, 04:27 PM
 
Location: Tower of Heaven
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You're wrong.They would merge, it's not a buyout.It's very different.
And it's not Deutsche Börse which would lead, but DB shareholders, they're not 100% german, you have Americans among them.
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Old 02-09-2011, 04:32 PM
 
450 posts, read 1,404,496 times
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Quote:
Originally Posted by RenaudFR View Post
You're wrong.They would merge, it's not a buyout.It's very different.
And it's not Deutsche Börse which would lead, but DB shareholders, they're not 100% german, you have Americans among them.
My apologies.

The Wall Street Journal described it as "The combination would effectively be a takeover by Deutsche Börse, whose shareholders would hold around 60% of a new entity, and end the long search by Chief Executive Reto Francioni for a transformative deal."
NYSE, Deutsche Börse in Deal Talks - WSJ.com

"Mr. Francioni would be chairman while NYSE Euronext Chief Executive Duncan Niederauer would retain his role under a board drawn equally from both companies. The new entity would be led jointly from the new Deutsche Börse headquarters near Frankfurt and New York, and incorporated in the Netherlands."

Mergers and buyouts can often have the same result as well, where one brand dies. Continental Airlines and United Airlines entered into a "merger of equals," with United shareholders having majority control. Now every plane is going to have United on the side of it and the headquarters are in Chicago and 500 ex-Continental employees were let go in Houston just this week. Nonetheless, merger or buyout, it is two companies becoming one. The NYSE would become a part of Deutsche Borse.
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Old 02-09-2011, 05:24 PM
 
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The system germany just put in place eliminates a lot of costs to investors by reducing or eliminating commissions and expensive software to get real time trades. Last I heard they are also not completely getting rid of the trading floor as it is needed to keep balance just greatly reducing its purpose.

It doesn't really make any difference where the exchange is held - its not like that means all of the money is going to Germany or that US Stocks are going to collapse.
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