European Firms Continue to Pull Back From NYSE

by: David Hunkar

The exodus of European firms from the New York Stock Exchange continues.

On Friday German auto maker Daimler AG (DAI) became the latest company to announce plans to delist from the NYSE, following the delisting announcement from Deutsche Telekom AG (DT) two weeks ago. After these two delistings, just four large German companies will trade on the NYSE.

French insurer AXA SA already trades on the OTC markets, while Hellenic Telecom (OTE) of Greece has also announced plans to delist from the Big Board.

According to a Wall Street Journal article, some of the reasons for the delistings from the NYSE include:

  • Many European firms view U.S. listing as a liability.
  • Foreign investors are able to invest directly via electronic trading platforms in their domestic markets.
  • Listing requirements have risen on overseas markets.
  • Cost of complying with U.S. regulations such as the Sarbanes-Oxley Act has become burdensome.
  • The prestige of a U.S. listing has faded since Enron and the financial crisis.
  • The daily trading volume of stocks relative to global trading volume is lower for some companies.

With the removal of Daimler and Deutsche Telekom, the only four German companies that will continue to trade on the NYSE are Siemens (SI), Deutsche Bank (NYSE:DB), Fresenius Medical Care (NYSE:FMS) and SAP AG (NYSE:SAP).

Other European firms that have already delisted their stock from the NYSE are:

However, some firms such as E.ON continue to trade on the OTC markets as noted above.