NYSE Euronext Takes on LSE in Borsa Italiana Bidding War -- WSJ

NYSE Euronext has submitted a preliminary offer for Italian markets operator Borsa Italiana, according to a report in the Wall Street Journal. On Thursday, Borsa received a cash/share bid from the London Stock Exchange Group plc [LSE] of about €1.5 billion. NYSE Euronext's offer is reported to be in the same price range. NYSE told the Borsa it has a more diverse business than the LSE, and more experience in the successful integration of exchanges. NYSE Euronext has a partnership with Borsa in the MTS European bond-trading platform, which it says it wants to keep. The Borsa has triggered an option to buyout NYSE's stake in the project. NYSE Euronext already owns four European exchanges (Paris, Amsterdam, Brussels and Lisbon). Borsa Italiana is Europe's seventh largest exchange. LSE is 30% owned by Nasdaq Stock Market, which tried unsuccessfully to take it over in early 2007. NYSE Euronext shares are down 20.9% YTD.

Sources: Wall Street Journal
Commentary: NYSE Euronext Weakness Continues • NYSE-Euronext Definitely a Buy At Current Levels • NYSE Euronext: Is a Sell Rating Justified?
Stocks/ETFs to watch: NYSE Euronext (NYX), Nasdaq Stock Market Inc. (NDAQ). Competitors: IntercontinentalExchange Inc. (ICE), International Securities Exchange Inc. (ISE), Chicago Mercantile Exchange Holdings (CME), CBOT Holdings Inc. (BOT). ETFs: Financial Select Sector SPDR ETF (XLF), iShares Dow Jones US Financial ETF (IYF)

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