The privately held American StockExchange will be purchased by larger rival NYSE Euronext, the company said yesterday. The purchase strengthens NYSE’sposition in the options market, as well as in exchange-traded and closed-endfunds.
Under the deal, which is the first forNYSE Euronext under the leadership of Duncan Niederaur, who was named CEO after John Thain left to helm Merrill Lynch, the company will pay $260 million in NYSE Euronext common stock for Amex. Additionally, Amex members will be entitled to receive additional shares of NYSE common stock based on the net proceeds from the expected sale of Amex’s lower Manhatten headquarters.
The NYSE collaborated with Euronext inApril, and its rival Nasdaq Stock Market struck deals in 2007 to buy thePhiladelphia Stock Exchange, the Boston Stock Exchange, and, with Borse Dubai,the Stockholm-based OMX, according to Forbes.
The deal to buy the exchange comesamid a vast wave of consolidation among exchanges, and confirms previous rumors of NYSE’s interest in the Amex, which is one of the five largest
NYSE revamped its automatedoptions trading business last year, and the deal will help it grow inthat area, according to Forbes.