Value of proposed ICE deal to buy NYSE Euronext surpasses $10 billion
2013-06-04 10:56:29
The value of the planned deal by IntercontinentalExchange Inc. (ICE) to buy NYSE Euronext (NYX) passed $10 billion Friday as both stocks hit 52-week highs.
The indicative valuation is based on the cash-and-stock offer made by ICE in December and used by the Atlanta-based company to track its progress. ICE also made a cash-only offer.
Exchange stocks have rallied as market volatility has pushed up trading volumes in many asset classes, and ICE shares reached their highest level since December 2007 during Friday's session. NYSE Euronext hit a two-year high.
The two companies aim to complete a deal in the second half of 2013 that would create the world's largest exchange operator by revenue and market value, subject to regulatory and shareholder approval.
ICE shares were recently trading up 1% at $173.30 and NYSE Euronext's shares were 0.7% higher at $40.62. These prices value the proposed cash-and-stock offer at $10.07 billion, based on NYSE's fully diluted share count.
The most expensive exchange deal to date was the $11.07 billion purchase of the parent of the New York Mercantile Exchange by CME Group Inc. (CME) in 2008.