Stock exchange operators NYSE Euronext ( NYX ) and Deutsche Boerse AG late Tuesday announced a special one-time dividend as part of their massive proposed merger.
The companies are offering a special dividend of two euros per share (~$2.93 US) after the deal closes. The total proposed payout will be about 620 million euros (~$910 million US).
The one-time dividend is likely aimed at winning shareholder approval for the deal, although many believe antitrust issues are the biggest potential hurdle for the $10.2 billion takeover of NYSE. European regulators will eye the deal closely, as a rival big from NASDAQ OMX and I.C.E. was recently withdrawn over regulatory concerns in the U.S.
NYSE shares were mostly flat in premarket trading Wednesday.
The Bottom Line
Shares of NYSE have a 3.40% dividend yield, based on last night's closing stock price of $35.27. The stock has technical support in the $32-$34 price area. If the shares can firm up, we see overhead resistance around the $38 price level.
NYSE Euronext ( NYX ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
Created by Dividend.com