NYSE Euronext and Deutsche Borse have set a break-up fee of $339 million, Financial Times reports. The large break-up fee is meant to discourage either company from backing out of their $10.2 billion agreement for a better deal from CME Group.
The transaction is being done as a stock swap, as per which, 0.47 shares of NYSE Euronext and one share of Deutsche Börse will be exchanged for one share of a Netherlands-based holding company that will own the combined group. The new group will be the world’s biggest exchange group, with Deutsche Börse shareholders owning about 60% of the combined entity, adds The Wall Street Journal.
Click here for the story from Financial Times.
Click here for additional coverage from The Wall Street Journal.