NYSE Comments May End Six Months of Deutsche Boerse Speculation

By Edgar Ortega

June 10 (Bloomberg) -- NYSE Euronext Chief Executive Officer Duncan Niederauer squashed six months of speculation that he was considering a merger with Deutsche Boerse AG.

The world’s largest owner of stock exchanges isn’t in negotiations with the Frankfurt-based Deutsche Boerse and has no plans to enter them, Reuters reported, citing remarks yesterday by Niederauer at the Japan Society in New York. Richard Adamonis, a spokesman for the exchange, declined to comment.

NYSE Euronext, owner of the New York Stock Exchange and four bourses in Europe, held preliminary talks with Deutsche Boerse last year, people familiar with the matter said at the time. NYSE Euronext shares rallied 14 percent April 23 and jumped 23 percent on Dec. 8 after reports in German magazines raised the prospect of a deal.

Niederauer told investors last week that he is focused on squeezing more profit from NYSE Group Inc.’s $12.4 billion purchase of Paris-based Euronext NV by overhauling trading systems on both sides of the Atlantic to reduce costs. Niederauer said earlier this year that consolidation among exchanges may slow as companies integrate operations from a wave of deals since 2006 valued at about $54 billion, according to data compiled by Bloomberg.

Deutsche Boerse, the second-largest exchange operator, is also seeking to cut costs to sustain growth after the Dow Jones Stoxx 600 Index lost 46 percent in 2008, posting its steepest yearly drop in more than three decades. CEO Reto Francioni told shareholders last month that expanding without an acquisition “remains the highest priority,” and declined to comment on “rumors” about merger talks with NYSE Euronext.

Yesterday, NYSE Euronext shares rose $1.21 to $30.68 in New York trading, while Deutsche Boerse declined 1.80 euros to 59 euros in Frankfurt. NYSE Euronext has a market value of $7.98 billion, less than half Deutsche Boerse’s $16.2 billion, according to Bloomberg data.

To contact the reporter on this story: Edgar Ortega in New York at ebarrales@bloomberg.net.