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NASDAQ, I.C.E. Bid $11.3 Billion for NYSE Euronext (NYX)

By Dividend.com April 01, 2011, 08:31:18 AM EDT

Stock exchange operator NYSE Euronext ( NYX ) on Friday received a rival takeover bid from fellow exchange operators Intercontinental Exchange ( ICE ) and NASDAQ OMX ( NDAQ ).

The $11.3 billion cash/stock buyout offer represents a 19% premium over German bidder Deutsche Boerse's previously-agreed-to takeover price. NYSE agreed to that offer in February, and speculation immediately began regarding rival bids for the company.

NASDAQ and I.C.E. are offering $42.50 per share for NYX, a nearly 21% premium over the stock's Thursday closing price of $35.17.

Neither offer will be embraced without controversy. Many market watchers felt uneasy about a German company owning the largest U.S. stock exchange, while the NASDAQ/I.C.E. bid would certainly bring up serious antitrust issues to federal regulators.

NYSE Euronext shares rose $3.83, or nearly 11%, in premarket trading Friday.

The Bottom Line
Shares of NYSE Euronext ( NYX ) have a 3.41% dividend yield, based on last night's closing stock price of $35.17. The stock has technical support in the $33 price area. The shares are trading at overhead resistance in the $39 price area. Both possible deals for NYX have high hurdles to clear and we would consider ringing the register if one owns the shares of NYX.

NYSE Euronext ( NYX ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: ICE, NDAQ



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