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Nasdaq is moving closer to a hostile bid for NYSE Euronext, which could come as early as Tuesday, sources close to the matter told CNBC.
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NASDAQ MarketSite Tower, Times Square, New York, NY
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Nasdaq [NDAQ 26.37 
-0.82 (-3.02%) 
] has nearly secured financing for the hostile bid [NYX 36.55 
1.28 (+3.63%) ], in an arrangement that could involve IntercontinentalExchange, also known as ICE [ICE 124.79 -1.28 (-1.02%) ], which operates a global futures exchange and over-the-counter (OTC) markets and derivatives clearing houses.
Questions remain on how financing would be structured, as well as what role ICE would play in the bid, as sources say that ICE will not use its stock in any deal. Instead, it appears ICE could commit to purchasing certain NYSE assets upon the closing of any deal.
Any Nasdaq bid would face significant obstacles, including the likelihood of strong antitrust scrutiny, as nearly every U.S.-listed stock sits on either the NYSE or Nasdaq exchanges.
Last month, Deutsche Boerse and NYSE Euronext announced they would merge to create the world’s largest exchange operator in a deal worth $10.2 billion.
Since then, there has been widespread speculation that Nasdaq would either make a rival bid for NYSE or agree to merge with another international exchange, such as the London Stock Exchange.
Under the Deutsche Boerse deal, shareholders of the German exchange would control 60 percent of the new company and 10 of 17 board seats, a point that raised concerns in the United States that the New York Stock Exchange will lose influence and independence.
That tension could raise obstacles to regulatory approval of the Deutsche Boerse/NYSE Euronext deal, which values the two-century-old icon of American capitalism at about $39 a share.
Each NYSE Euronext share will be exchanged for 0.47 share in the new company; Deutsche Boerse shares will be swapped on a one-for-one basis, the companies said in a February statement.
Monday’s Nasdaq news comes amid a merger frenzy in the exchange business. Last week, the Sunday Times reported that the London Stock Exchange [LSE-GB 842.00 -5.00 (-0.59%) ] was eyeing a takeover of Nasdaq. The LSE recently announced a merger with the Canadian TMX Group, which operates the Toronto and Montreal stock exchanges.
