Shareholders of European stock-exchange operator Euronext rejected a proposal yesterday to commit in principle to a takeover by Deutsche Boerse Group, giving a boost to a rival bid from the New York Stock Exchange.
As the matchmaking dance between some of the world's largest stock exchanges continued, Euronext's boards reiterated they currently prefer an offer from the NYSE Group Inc. to one proposed by the German stock exchange.
Euronext CEO Jean-Francois Theodore said at the annual shareholders meeting that he and the supervisory board had not made a final decision to formally endorse either bid, but advised shareholders to vote against declaring a preference for Deutsche Boerse.
"Your board is only telling you, asking you, advising you, not to deprive yourself of your freedom of choice," he said.
Of shares voting at the meeting, 54 per cent were against and 38 percent in favor of the proposal to commit in principle to the German exchange. Others abstained.
Deutsche Boerse, which holds its own shareholder meeting today, said it will be reviewing the implications of the Euronext vote over the coming days. The NYSE declined to comment on the results.
Euronext, which runs the Paris, Brussels, Amsterdam and Lisbon exchanges, sits at the center of the current round of stock-market consolidation, after the Nasdaq Stock Market acquired 25 per cent of the London Stock Exchange.
At closing prices yesterday, the NYSE's cash-and-stock offer was worth around €7.8 billion, while Deutsche Boerse's bid was worth around €8.6 billion.
AP