Another Wrinkle in NASDAQ’s Bid for NYSE

April 20, 2011

I briefly posted about the decision the NYSE board has to make from a purely investor/corporate governance perspective.  The Deal Professor offers another perspective: The NYSE board also has to consider the antitrust issues involved with agreeing to be bought by NASDAQ.  Right now, NASDAQ and NYSE are two, direct, competitors in that industry.  Therefore, there is a possibility (some say likely) that the Antitrust Division of the DOJ will kill this deal.

If, NYSE accepts NASDAQ’s higher bid, and the DOJ does not approve the deal, NYSE is left as a going concern and its shareholders do not get the benefit of the control premium that Deutsche Borse is currently offering.

More and more, it looks like NYSE will reject the NASDAQ bid (and will have a good reason do to so).

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