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NYSE Euronext profits hit by cost of failed merger | NYSE Euronext profits hit by cost of failed merger |
(40 minutes later) | |
Profits at NYSE Euronext have been hit by the collapse of its planned merger with Deutsche Boerse. | Profits at NYSE Euronext have been hit by the collapse of its planned merger with Deutsche Boerse. |
It reported a fall in fourth quarter net income of 19% to $110m (£70m). | It reported a fall in fourth quarter net income of 19% to $110m (£70m). |
Last week European officials blocked the deal with Deutsche Boerse, saying the two would dominate the trading in Europe of some financial products. | Last week European officials blocked the deal with Deutsche Boerse, saying the two would dominate the trading in Europe of some financial products. |
NYSE Euronext, which operates the New York Stock Exchange, said costs relating to the deal and its collapse amounted to $46m (£29m). | NYSE Euronext, which operates the New York Stock Exchange, said costs relating to the deal and its collapse amounted to $46m (£29m). |
Alternative strategy | |
The group also operates stock markets in Paris, Brussels and Amsterdam, as well as the London-based derivatives market Liffe. | The group also operates stock markets in Paris, Brussels and Amsterdam, as well as the London-based derivatives market Liffe. |
In a statement accompanying the fourth quarter results, chief executive, Duncan Niederauer, said: "We are extremely disappointed with the decision, and as I have stated, we believe that it stems from a fundamentally different view of the competitive dynamics in the global markets." | In a statement accompanying the fourth quarter results, chief executive, Duncan Niederauer, said: "We are extremely disappointed with the decision, and as I have stated, we believe that it stems from a fundamentally different view of the competitive dynamics in the global markets." |
The company is now working on an alternative strategy, details of which will be released at an investor day in April. | |
In the meantime, NYSE Euronext has launched a programme to spend $550m on buying back its shares. | |
It has also promised to expand its derivatives trading business. | |
There has been speculation that NYSE Euronext is considering a bid for the LCH Clearnet clearing house. | |
LCH works as a go-between buyers and sellers. It ensures that a deal will go-ahead if one of the parties fails to pay-up. | |
The London Stock Exchange is in talks to buy a controlling stake in LCH. |
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