Euronext to plot ways to block deal creating European Titan

Euronext NV copy



Stock exchange operator Euronext NV is evaluating how to create roadblocks to a merger between its London- and Frankfurt-based competitors because of concern the deal would marginalize its own role in European trading, according to people familiar with the matter.
Euronext is working with advisers, including consultants and lawyers, as it prepares to argue to regulators in Brussels that letting London Stock Exchange Group Plc and Deutsche Boerse AG fuse together would hurt competition in the region, said the people, who asked not to be identified because the discussions are private.
The Anglo-German combination would tower over other European exchange companies and would be among the biggest in the world. Euronext is also considering lobbying in favor of a counterbid for LSE by U.S. rival Intercontinental Exchange Inc., according to one of the people. Atlanta-based ICE has said it’s weighing an offer for LSE.

Hiring Advisers
The U.S. exchange is considering spinning off parts of LSE, including Italian exchange BorsaItaliana and the French clearing unit, and Euronext might try to buy those assets, people familiar with the matter have said.
Euronext has hired BNP Paribas SA and Rothschild & Co. to advise on potentially buying assets, according to people familiar with the discussions. A Euronext spokeswoman declined to comment, as did representatives for BNP and Rothschild.
Amid these deliberations, Euronext on Monday named a new chief financial officer: Giorgio Modica, a BNP Paribas banker who has worked with exchanges on mergers and acquisitions.
The appointment is a sign to some that Euronext will seek deals. Euronext’s statement announcing the replacement of AmauryDauge noted that Modica’s job at the bank included responsibility for stock exchanges in the Italian and Spanish markets — notable because Euronext could bulk up in those countries. Euronext runs markets in cities including Paris and Amsterdam.
LSE and Deutsche Boerse’s chief executives were scheduled to meet with European Union Financial Services Commissioner Jonathan Hill.

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