- Patrick Young
- ISE Announces Possible Business Combination
- www.exchange-handbook.co.uk
Summary
Deutsche Borse feel under pressure to make an acquisition
They are looking for a transformational business – particularly something that gives them a key footprint in the USA
This is a distinctly attractive transformational purchase for Deutsche Borse and gives ISE a huge opportunity to bring US trading to Europe
The aim is to create an across the board competitor to NYSE Euronext
Analysis
Having heard stories of the deal for some time (equally DB have spoken to every exchange in the USA about some sort of tie-up), certainly this deal makes sense for DB by giving it a key US asset, a brilliant technocratic and lean US business , and licences to trade in the major products and create a Trans Atlantic competitor to NYSE Euronext, as well as putting pressure on NASDAQ to do a deal in Europe and the derivatives business.
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