Random Thoughts
Tuesday, October 31, 2006
But did you see this, dude ?
we see so many new news items about European companies, but rarely do we bother to check what is happening with their controller, that is to say, the companies operating stock exchanges themselves. here is a little summary of recent news, in chronological order
1. Deutsche Borse, the operator of Frankfurt stock exchange, has longed tried to persuade both London Stock Exchange and Euronext (operator of Amsterdam, Brussels, Paris and Lisbon exchanges). however, they both have been refusing the offers. Competiton Commission (CC) of Europe was against Deutsche Borse-LSE bid because it was afraid that it would create a monopoly.
2. recently NasDaq submitted a multi-billion dollar bid for London Stock Exchange.
3. NYSE, afraid of being the last in the race for access to European markets, submitted a bid for Eurostar.
4. CC then said that Deutsche Borse could submit a bid for LSE and there were no issues regarding monopoly. DB, however, was getting more favourable signals from Euronext and said that it was no longer interested in LSE.
5. Just when it seemed that DB - Euronext merger was going to happen smoothly, private client stockbrokers of UK have written to CC objecting that this merger will create a monopoly with respect to derivative trading.
6. if you think all this was not enough, the European financial watchdog, BaFin has announced that it will check if the hedge funds controlling DB were instrumental in causing the CEO, Werner Seifert, to resign and also had made him withdraw the offer made to LSE.
the world is indeed bad, but more than that, it is crazy. isn't it ?
1. Deutsche Borse, the operator of Frankfurt stock exchange, has longed tried to persuade both London Stock Exchange and Euronext (operator of Amsterdam, Brussels, Paris and Lisbon exchanges). however, they both have been refusing the offers. Competiton Commission (CC) of Europe was against Deutsche Borse-LSE bid because it was afraid that it would create a monopoly.
2. recently NasDaq submitted a multi-billion dollar bid for London Stock Exchange.
3. NYSE, afraid of being the last in the race for access to European markets, submitted a bid for Eurostar.
4. CC then said that Deutsche Borse could submit a bid for LSE and there were no issues regarding monopoly. DB, however, was getting more favourable signals from Euronext and said that it was no longer interested in LSE.
5. Just when it seemed that DB - Euronext merger was going to happen smoothly, private client stockbrokers of UK have written to CC objecting that this merger will create a monopoly with respect to derivative trading.
6. if you think all this was not enough, the European financial watchdog, BaFin has announced that it will check if the hedge funds controlling DB were instrumental in causing the CEO, Werner Seifert, to resign and also had made him withdraw the offer made to LSE.
the world is indeed bad, but more than that, it is crazy. isn't it ?
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