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Tuesday, April 12, 2011

NYSE shareholders skeptical of Nasdaq/ICE offer, (NYSE: NYX), (NASDAQ: NDAQ), (NYSE: ICE)

NYSE Euronext's (NYX.N) shareholders seem skeptical that Nasdaq OMX Group (NDAQ.O) and IntercontinentalExchange Inc (ICE.N) could really buy the exchange operator, interviews this week revealed. Three of the five shareholders that spoke to Reuters said face-to-face meetings with exchange executives could sway them as they weigh the Big Board's friendly merger agreement with Germany's Deutsche Boerse (DB1Gn.DE) against an unsolicited, higher bid from Nasdaq and ICE. NYSE said on Sunday that it was sticking with Deutsche Boerse's deal, because the ICE/Nasdaq bid was too risky. Nasdaq and ICE executives have spoken to NYSE shareholders about their offer, which they believe is superior. Though both deals face considerable antitrust hurdles, most hedge funds and other institutions zeroed in on what could kill Nasdaq's planned tie-up with the NYSE, stressing Nasdaq CEO Robert Greifeld needs to make a strong case he can overcome a tough regulatory review.

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