Sprecher will keep his positions. Four members of the NYSE board will be added to ICE’s board, expanding it to 15 members.
For each share of NYSE Euronext stock that they own, shareholders can choose either $33.12 in cash, roughly a quarter-share of ICE, or a combination of $11.27 in cash and roughly one-sixth of a share of ICE.
NYSE’s stock jumped $7.89, or 33 percent, to $31.95 in heavy trading shortly after the market opened. ICE’s stock fell $1.43 to $126.8.
ICE plans to pay for the cash part of the acquisition with a combination of cash and existing debt. It added that the deal will help it cut costs and should increase its earnings more than 15 percent in the first year after the deal closes.
The deal has been approved by the boards of both companies, but still needs the approvals by regulators and shareholders of both companies. It’s expected to close in the second half of next year.
Peter Costa, President of Empire Executions Inc., a boutique trading firm on the floor of the NYSE, and a governor with the New York Stock Exchange, said that both companies knew the value of the NYSE brand and would try to preserve it.
“The trading floor, while iconic, may seem to be an anachronism in this high-speed world of electronic this and electronic that, but it still survives because the customers that use the trading floor still see the added value of having some human intervention,” Costa said in an email.
By Rand Paul
Obama acts as though we no longer have a Constitution
Independent voices from the TWT Communities
What does the middle-class conservative think about everything? Find out here.
Television commentary, reviews, news and nonstop DVR catch-up.
Benghazi: The anatomy of a scandal
Vietnam Memorial adds four names
Cinco de Mayo on the Mall
NRA kicks off annual convention
California wildfires wreak havoc