Reuters – Earlier this month, Euronext asked shareholders to vote against an agenda point at the shareholders’ meeting on the principle of a merger with Deutsche Boerse.<\/p>\n
And on Monday, the Paris-based company said a deal with the NYSE would offer the most attractive combination.<\/p>\n
But it is not yet known whether this position will be backed by all shareholders, as some of them, such as British hedge fund The Children’s Investment (TCI) fund, have investments in both Euronext and Deutsche Boerse and would gain more from a deal between these two than from a transatlantic tie-up.<\/p>\n
TCI, which owns around 8.5 percent of Euronext, was at the head of a shareholder rebellion that forced Deutsche Boerse to withdraw a takeover bid for the London Stock Exchange last year, triggering a crisis that led to the resignation of the German exchange’s management.<\/p>\n
TCI has since called for a merger between Deutsche Boerse and Euronext, arguing that such a deal would deliver more synergies, and may decide to pressure Euronext’s management to continue discussions with the German exchange, especially if there are signs that it will come back with an improved offer.<\/p>\n
Deutsche Boerse said on Tuesday its proposal involved a mixture of cash and shares and envisaged annual synergies of 300 million euros.<\/p>\n