Shares of stock exchange operator NYSE Euronext (
) plunged 10% in premarket trading Monday, as The NASDAQ OMX Group
) and IntercontinentalExchange (
) dropped their combined acquisition offer for NYSE.
The consortium said it made the decision following recent
discussions with the Antitrust Division of the U.S. Department of
Justice. NASDAQ/I.C.E. said it will no longer pursue an acquisition
NASDAQ CEO Bob Greifeld commented, "We took the decision to
withdraw our offer when it became clear that we would not be
successful in securing regulatory approval for our proposal despite
offering a variety of substantial remedies, including the sale of
the NYSE SRO and related businesses. We saw a unique opportunity to
create more value for stockholders and strengthen the U.S. as a
center for capital formation amid an ongoing shift of these vital
activities and jobs outside of our country."
The move paves the way for Germany's Deutsche Borse AG to
complete is takeover of NYSE. NYSE had previously accepted an
acquisition offer from Deutsche Borse before NASDAQ/I.C.E. stepped
in with a higher bid.
NYSE Euronext shares plunged $4, or -10%, in premarket trading
The Bottom Line
Shares of NYSE Euronext (
) have a 2.93% dividend yield, based on Friday's closing stock
price of $40.89. The stock has technical support in the $34-$36
price area. If the shares can firm up, we see overhead resistance
around the $42 price level.
NYSE Euronext (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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