NYSE Euronext Shares Plummet as NASDAQ/I.C.E. Drop Bid (NYX)


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Shares of stock exchange operator NYSE Euronext ( NYX ) plunged 10% in premarket trading Monday, as The NASDAQ OMX Group ( NDAQ ) and IntercontinentalExchange ( ICE ) 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 of NYSE.

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 Monday.

The Bottom Line
Shares of NYSE Euronext ( NYX ) 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 ( 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 Nasdaq, Inc.

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